Senate Leader Doubts Estate Tax Repeal in Trump Bill

Senate Leader John Thune says President Trump's fiscal bill is unlikely to repeal the estate tax, citing budgetary rules that limit the overall size of the bill. Thune has been a vocal critic of the 40% estate tax, but says the Senate version of the bill will mirror the House's plan, permanently increasing the estate tax exemption to $15 million for individuals and $30 million for married couples. The estate tax affects only a small segment of taxpayers, but has gained political significance with Republicans branding it a "death tax" and saying it inhibits farmers and other small business owners from passing on their assets to their children.

Senate Leader John Thune has indicated that President Trump's fiscal bill, currently in the Senate, is unlikely to repeal the estate tax. Thune, a vocal critic of the 40% estate tax, has stated that the Senate version of the bill will mirror the House's plan, permanently increasing the estate tax exemption to $15 million for individuals and $30 million for married couples. The estate tax affects only a small segment of taxpayers but has gained political significance with Republicans branding it a "death tax" and saying it inhibits farmers and other small business owners from passing on their assets to their children [3].

The House GOP passed a multitrillion-dollar tax and spending package that includes many of President Donald Trump's priorities. Some provisions, including Medicaid, the "SALT" deduction, and the child tax credit, could change amid Senate Republican debate. The House bill also approved historic spending cuts to programs for low-income families, including Medicaid health coverage and SNAP, formerly known as food stamps [1].

The Senate bill must follow the "Byrd Rule," which bans anything unrelated to federal revenue or spending. Additionally, the bill must clear the upper chamber with a simple majority vote due to the use of budget reconciliation, a process that bypasses the Senate filibuster. However, some GOP senators have cost concerns about the House-approved bill. Sen. Ron Johnson, R-Wis., has stated that he could stop the process until the president gets serious about spending reduction and reducing the deficit [1].

The estate tax is much broader than agriculture, affecting fewer than 3,200 estates nationally in 2022. However, the current Section 2032A cap of $1.42 million has not kept up with the growth in land values, making it difficult for farmers and ranchers to pass down their farms to the next generation. Sen. Cindy Hyde-Smith, R-Miss., has introduced the HERITAGE Act, which would raise the limits under Section 2032A to $15 million, aligning with the proposed estate-tax exemption in the budget reconciliation bill [2].

In conclusion, while Senate Leader John Thune has indicated that the estate tax is unlikely to be repealed, the Senate version of the bill will permanently increase the estate tax exemption. This change could provide some relief to farmers and other small business owners seeking to pass down their assets to their children. However, the bill's overall impact on the economy and the deficit remains a topic of debate among policy experts.

References:
[1] https://www.nbcnewyork.com/news/business/money-report/house-gop-passed-trillions-in-tax-cuts-how-trumps-big-bill-could-change-in-the-senate/6285267/?noamp=mobile&os=wtmb5utkcxk5refapputm_sourcesyndication&ref=app
[2] https://www.dtnpf.com/agriculture/web/ag/blogs/ag-policy-blog/blog-post/2025/06/03/senator-introduces-bill-increase
[3] https://www.cnbc.com/2025/06/03/why-nobel-prize-winning-economists-oppose-trumps-budget-bill.html