# What This Bill Does

This bill would eliminate the federal estate tax, which is a tax that currently applies when wealthy people pass their money and property to their heirs after they die. Right now, when someone dies with a large estate (generally over $13 million for individuals), the federal government taxes a portion of what gets passed down to family members. This bill would get rid of that tax entirely, meaning families could inherit large amounts of money and property without paying any federal estate tax.

The bill also preserves something called "stepped-up basis," which is a tax break that already exists. Here's what that means in practical terms: if your parent bought a stock for $10,000 and it's worth $100,000 when they die and leave it to you, you inherit it at the current $100,000 value. You wouldn't owe taxes on that $90,000 gain if you sold it right away. Without this protection, you'd technically owe taxes on the increase in value that happened while your parent owned it. By keeping stepped-up basis in place while eliminating the estate tax, this bill makes inheritance even more tax-friendly for wealthy families.

Who does this affect? Primarily very wealthy families. Most Americans don't pay estate taxes anyway because the threshold is so high—only estates worth millions of dollars are subject to it. However, this bill would benefit families with substantial wealth, farms, or family businesses, allowing them to pass down their full assets without any federal estate tax burden. The trade-off is that the federal government would lose tax revenue that currently comes from these estates, which could affect government funding for other programs.

Permanently Repeal the Estate Tax Act of 2023

Latta, Robert E.

Permanently Repeal the Estate Tax Act of 2023 This bill repeals the federal estate tax, effective for estates of decedents dying after December 31, 2022.