Bills to Eliminate Death Tax Introduced
February 3, 2017

Legislation to repeal estate taxes was introduced in both the House and Senate. The bills repeal the estate tax and make no changes to stepped-up basis. The House bill was introduced by Reps. Kristi Noem (S.D.) and Sanford Bishop (Ga.). The Senate bill was introduced by Sen. John Thune (S.D.). Both bills are titled the Death Tax Repeal Act of 2017.

The estate tax is levied on the net value - less an exemption - of an owner's assets transferred at death to an heir or heirs. For the 2016 tax year, the exemption for the estate tax was $5.45 million for an individual and $10.9 million for couples. Transferred estates valued at more than those figures were subject to a maximum tax rate of 40 percent on the amount of assets above those levels.

The American Sheep Industry Association supports the provisions in the legislation and the repeal of the estate tax.