(Bloomberg) -- The Republican tax bill will preserve the estate tax, while temporarily doubling the threshold limits at which the levy kicks in, according to Representative Kristi Noem, one of the House-Senate conference committee tax negotiators.
The change would reduce the number of multimillion-dollar estates that are hit with the 40 percent tax -- before returning to current limits in 2026. Both chambers called for doubling the exemption limits for the tax, but the House bill had called for its full repeal in 2025.
President Donald Trump along with Republicans have promised they would get rid of the levy, which conservatives often refer to as the “death tax.”
The estate tax currently applies a 40 percent tax rate to estates worth more than $5.49 million for single individuals, or $10.98 million for couples.
Noem of South Dakota said she’s disappointed it isn’t being repealed, but happy to see policy is being improved.