S587119th CongressWALLET

Death Tax Repeal Act of 2025

Sponsored By: Senator Thune, John [R-SD]

Introduced

Summary

Repeal of the estate and generation-skipping transfer taxes. This bill would eliminate those transfer taxes for decedents dying and GST transfers occurring after enactment and would overhaul the gift tax to raise the lifetime exemption and add a new tiered rate schedule.

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  • Families and heirs: Heirs of people who die after enactment would no longer face the federal estate tax or the generation-skipping transfer tax.
  • Donors and trusts: The lifetime gift exemption would rise to $10 million, indexed for inflation, and gift tax rates would be rewritten into brackets that range from 18% up to 35% for the largest gifts. Trust transfers would be treated as taxable gifts unless the trust is wholly owned by the donor or the donor's spouse.
  • Implementation and timing: The changes would apply to gifts made and transfers occurring on or after enactment and include a transition rule that treats the calendar year of enactment as two separate periods for certain tax provisions.

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 2 benefits, 0 costs, 1 mixed.

Estate tax repeal for decedents

If enacted, the bill would end the federal estate tax for people who die on or after the date of enactment. Executors, heirs, and beneficiaries of those estates would generally no longer owe the federal estate tax. There are limited exceptions for some Qualified Domestic Trust distributions described in the bill.

Repeal of generation-skipping tax

If enacted, the bill would end the generation-skipping transfer (GST) tax for transfers on or after the date of enactment. Trusts and donors who make transfers to skip a generation, like gifts to grandchildren, would no longer face the GST tax on those transfers after enactment.

Major gift tax overhaul for donors

If enacted, the bill would rewrite how the gift tax is computed each year. The tax would equal a "tentative tax" on total taxable gifts minus a tentative tax on prior gifts, using a new bracket schedule starting at 18% up to $10,000 and rising to 35% on amounts over $500,000. It would set the lifetime gift exclusion reference based on $10,000,000 and then increase that amount for inflation each year, rounded to the nearest $10,000. Putting assets into many trusts would count as a taxable gift unless the trust is treated as wholly owned by you or your spouse. These rules would apply to gifts made on or after the date of enactment. The bill would also treat the calendar year of enactment as two separate years for certain gift and basis rules.

Sponsors & CoSponsors

Sponsor

Thune, John [R-SD]

SD • R

Cosponsors

  • Sen. Grassley, Chuck [R-IA]

    IA • R

    Sponsored 2/13/2025

  • Sen. Lankford, James [R-OK]

    OK • R

    Sponsored 2/13/2025

  • Cindy Hyde-Smith

    MS • R

    Sponsored 2/13/2025

  • Bill Hagerty

    TN • R

    Sponsored 2/13/2025

  • Sen. Daines, Steve [R-MT]

    MT • R

    Sponsored 2/13/2025

  • Sen. Tuberville, Tommy [R-AL]

    AL • R

    Sponsored 2/13/2025

  • Sen. Sheehy, Tim [R-MT]

    MT • R

    Sponsored 2/13/2025

  • Ron Johnson

    WI • R

    Sponsored 2/13/2025

  • Markwayne Mullin

    OK • R

    Sponsored 2/13/2025

  • Shelley Capito

    WV • R

    Sponsored 2/13/2025

  • Sen. Justice, James C. [R-WV]

    WV • R

    Sponsored 2/13/2025

  • Sen. Cornyn, John [R-TX]

    TX • R

    Sponsored 2/13/2025

  • Roger Wicker

    MS • R

    Sponsored 2/13/2025

  • Sen. Scott, Tim [R-SC]

    SC • R

    Sponsored 2/13/2025

  • Sen. Blackburn, Marsha [R-TN]

    TN • R

    Sponsored 2/13/2025

  • Sen. Tillis, Thomas [R-NC]

    NC • R

    Sponsored 2/13/2025

  • Sen. Budd, Ted [R-NC]

    NC • R

    Sponsored 2/13/2025

  • Sen. Crapo, Mike [R-ID]

    ID • R

    Sponsored 2/13/2025

  • John Hoeven

    ND • R

    Sponsored 2/13/2025

  • Sen. Barrasso, John [R-WY]

    WY • R

    Sponsored 2/13/2025

  • Sen. Risch, James E. [R-ID]

    ID • R

    Sponsored 2/13/2025

  • John Boozman

    AR • R

    Sponsored 2/13/2025

  • Sen. Ernst, Joni [R-IA]

    IA • R

    Sponsored 2/13/2025

  • Sen. Moran, Jerry [R-KS]

    KS • R

    Sponsored 2/13/2025

  • Sen. Marshall, Roger [R-KS]

    KS • R

    Sponsored 2/13/2025

  • Sen. Cramer, Kevin [R-ND]

    ND • R

    Sponsored 2/13/2025

  • Sen. Ricketts, Pete [R-NE]

    NE • R

    Sponsored 2/13/2025

  • Sen. Scott, Rick [R-FL]

    FL • R

    Sponsored 2/13/2025

  • Sen. Kennedy, John [R-LA]

    LA • R

    Sponsored 2/13/2025

  • Mike Rounds

    SD • R

    Sponsored 2/13/2025

  • Sen. Lummis, Cynthia M. [R-WY]

    WY • R

    Sponsored 2/13/2025

  • Sen. Fischer, Deb [R-NE]

    NE • R

    Sponsored 2/13/2025

  • Sen. Graham, Lindsey [R-SC]

    SC • R

    Sponsored 2/13/2025

  • Sen. McCormick, David [R-PA]

    PA • R

    Sponsored 2/13/2025

  • Katie Britt

    AL • R

    Sponsored 2/13/2025

  • Sen. Young, Todd [R-IN]

    IN • R

    Sponsored 2/13/2025

  • Sen. Cotton, Tom [R-AR]

    AR • R

    Sponsored 2/13/2025

  • Sen. McConnell, Mitch [R-KY]

    KY • R

    Sponsored 2/13/2025

  • Sen. Banks, Jim [R-IN]

    IN • R

    Sponsored 2/13/2025

  • Sen. Curtis, John R. [R-UT]

    UT • R

    Sponsored 2/13/2025

  • Sen. Schmitt, Eric [R-MO]

    MO • R

    Sponsored 2/13/2025

  • Sen. Lee, Mike [R-UT]

    UT • R

    Sponsored 2/13/2025

  • Sen. Hawley, Josh [R-MO]

    MO • R

    Sponsored 2/13/2025

  • Sen. Cruz, Ted [R-TX]

    TX • R

    Sponsored 2/13/2025

  • Sen. Moreno, Bernie [R-OH]

    OH • R

    Sponsored 2/13/2025

  • Sen. Husted, Jon [R-OH]

    OH • R

    Sponsored 4/28/2025

Roll Call Votes

No roll call votes available for this bill.

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