Republican legislation in the House to repeal the federal estate tax would add nearly $270 billion to federal deficits, according to the nonpartisan Congressional Budget Office (CBO).
The office projects the legislation offered by Rep. Kevin BradyKevin BradySpicer: White House 'driving the train' on tax reform Retailers get aggressive in fight over GOP tax plan This week: GOP picks up the pieces after healthcare defeat MORE (R-Texas) would result in revenue losses starting in 2016. The CBO and the Joint Committee on Taxation produced the score.
Under the estate tax, which has a top rate of 40 percent, individuals are exempt if their assets total less than $5.43 million. For married couples, the threshold for avoiding the tax is $10.86 million.
Republicans have been rallying for a repeal of the estate tax, dubbing it the “death tax.”
Sen. John ThuneJohn ThuneThis week: GOP picks up the pieces after healthcare defeat Lawmakers want infrastructure funded by offshore tax reform Senate GOP hedges on ObamaCare repeal timeline MORE (R-S.D.) has offered a bill that would repeal the estate tax. More than two-dozen Senate Republicans have already endorsed it, including Senate Majority Leader Mitch McConnellMitch McConnellPath to 60 narrows for Trump pick Dems delay Senate panel vote on Supreme Court nominee This week: GOP picks up the pieces after healthcare defeat MORE (R-Ky.).
"It is the federal government’s final insult to tax your family when you have already paid taxes on your property throughout your life," McConnell said. "The thought of having to visit the IRS and the undertaker on the same day is an absolute outrage."
Before Congress left for its two-week recess last month, most Senate Republicans voted to wrap an amendment from Thune into their budget that would repeal the tax.
The budget is just a policy blueprint, however, and is non-binding.