MBA, Coalition Support Bill Repealing Estate Tax
The Mortgage Bankers Association joined more than 100 industry groups in a letter to Sen. John Thune, R-S.D., expressing support for his re-introducing a bill that would repeal the estate tax.
Thune, a member of the Senate Finance Committee, this month introduced the Death Tax Repeal Act of 2023; he has sponsored a version of this bill since 2013. The bill would permanently repeal the estate tax. A similar bill, H.R. 338, was introduced by Rep. Robert Latta, R-Ohio.
The Family Business Estate Tax Coalition, of which MBA is a member, sent the letter thanking Thune for the bill’s introduction.
“Historically, the FBETC has supported increased estate tax exemption thresholds indexed for inflation, permanent lower tax rates, and provisions for spousal transfer and stepped-up basis,” the letter said.
The Tax Cuts and Jobs Act, passed in the 117th Congress, authorized the Internal Revenue Service to temporarily double the exemption to $12.9 million for tax year 2023 and indexed future increases for inflation through 2025. But it does not repeal the tax entirely, for which Thune’s bill would provide.
“These changes represent significant relief to family-owned businesses from the estate tax,” the letter said. However, without further congressional action, the temporary increase in the exemption amount will expire at the end of 2025, increasing uncertainty and planning costs. While the FBETC supports making the estate tax provisions of TCJA permanent, the FBETC continues to believe that repeal is the best solution to protect all family-owned businesses from the estate tax.”
