• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises

2

Despite having a $165 million net worth, Scarlett Johansson says work-life balance doesn’t exist—and the first step to success is admitting that

3

Nearly 50,000 Lake Tahoe residents have to find a new power source after their energy source looks to redirect lines to data centers

1

The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises

2

Despite having a $165 million net worth, Scarlett Johansson says work-life balance doesn’t exist—and the first step to success is admitting that

3

Nearly 50,000 Lake Tahoe residents have to find a new power source after their energy source looks to redirect lines to data centers
Finance

If Trump Repeals the Estate Tax, the Federal Government Will Hardly Notice

By
Jeff Bukhari
Jeff Bukhari
Down Arrow Button Icon
By
Jeff Bukhari
Jeff Bukhari
Down Arrow Button Icon
April 27, 2017, 1:54 PM ET
President Donald Trump
President Donald TrumpBrendan Smialowski AFP/Getty Images

Despite the hype, the death of the so-called death tax isn’t that big of a deal for the U.S. government.

The repeal of the estate tax, which is one of the main provisions of the reform plan President Trump’s administration is pushing, would certainly provide a big measure of relief for those who are rich enough for it to apply to. But for all the hype that the tax and its potential repeal have generated, its scope is overblown.

The federal tax exemption for 2017 is $5.49 million, meaning that the assets of anyone who dies this year will only be taxed if they are greater than that amount at a rate of 40%. As it so happens, there aren’t all that many people who meet that threshold. Of the 2.7 million people the Census Bureau estimates will die in the U.S. this year, only about 11,000 of them will need the executors of their estates to file for the estate tax, according to the Tax Policy Center. Taking it even further, only around 5,200 will actually end up owing anything to the federal government, which represents less than 0.2% of all anticipated deaths.

This low number isn’t some aberration because the tax exemption has progressively gone up recently, either. Over the last six years, the number of estate tax filings, as well as filings that actually resulted in taxable returns, have been even lower. An estimated 9,500 estates filed for the tax in 2011, with only 4,400 of those claims having to pay anything. Last year, only 10,900 filed for the tax, and just 5,200 had to pay anything.

Despite the low number of people the estate tax ends up hitting, many out there assume it must generate a huge windfall for the government. After all, there are plenty of really rich people out there, and the topic seems to get more than its fair share of press coverage, so it stands to reason that the tax is a big cog in the larger collection picture. And even people who aren’t uber-affluent still devote time, energy and money to figuring out how to avoid getting hit by the tax.

(Click here for more articles from Time Inc.’s Looking Forward series.)

But look a little closer, and that assumption falls apart. The estate tax will only generate an estimated $19.7 billion in revenue this year, which is a mere drop in the bucket compared with the more than $3 trillion the federal government expects to collect as a whole. In fact, the estate tax wasn’t even a significant revenue generator for the government back in 2001, when there were an estimated 109,600 filings and 50,500 taxable estates. That year, only around $23.7 billion in estate tax was paid to the government, which isn’t all that much more than it’s expected to bring in this year.

But even though the federal government only stands to take in a modest amount of revenue, the repeal of the tax would represent a fairly significant boost to an individual family’s finances. This year, the estate tax will cost the families of the deceased $3.79 million each on average, and that figure is going to be much larger for those among the billionaire set.

About the Author
By Jeff Bukhari
See full bioRight Arrow Button Icon

Latest in Finance

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Finance

Mark Zuckerberg, chief executive officer of Meta Platforms Inc., left, and US President Donald Trump during a dinner with tech leaders in the State Dining Room of the White House in Washington, DC, US, on Thursday, Sept. 4, 2025. US President Donald Trump said he would be imposing tariffs on semiconductor imports "very shortly" but spare goods from companies like Apple Inc. that have pledged to boost their US investments. Photographer: Will Oliver/EPA/Bloomberg via Getty Images
Big TechDonald Trump
How Trump’s ‘unusual’ brokerage account traded around his own market-moving decisions—selling hyperscalers and buying energy stocks during the war
By Eva RoytburgMay 15, 2026
9 hours ago
Berkshire triples Alphabet stake and buys Delta stock while dumping Amazon in Greg Abel’s first quarter as CEO
InvestingBerkshire Hathaway
Berkshire triples Alphabet stake and buys Delta stock while dumping Amazon in Greg Abel’s first quarter as CEO
By Josh Funk and The Associated PressMay 15, 2026
10 hours ago
SpaceX said to plan public IPO filing as soon as Wednesday
Big TechIPOs
SpaceX said to plan public IPO filing as soon as Wednesday
By Anthony Hughes, Bailey Lipschultz and BloombergMay 15, 2026
10 hours ago
America’s productivity boom started before AI, and a Stanford economist who decoded the Great Resignation says working from home is the reason why
Future of Workremote work
America’s productivity boom started before AI, and a Stanford economist who decoded the Great Resignation says working from home is the reason why
By Marco Quiroz-GutierrezMay 15, 2026
12 hours ago
A man stands looking out over his front porch where a sign reads, "No data centers."
EnvironmentData centers
Startups are installing tiny data centers in people’s homes to reduce strain on the beleaguered electrical grid
By Sasha RogelbergMay 15, 2026
13 hours ago
deep-sea mining equipment
EnvironmentChina
China dominates the minerals that power AI. But one company claims there’s enough supply on the ocean floor to last for hundreds of years
By Jake AngeloMay 15, 2026
15 hours ago

Most Popular

The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises
Politics
The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises
By Jake AngeloMay 12, 2026
4 days ago
Despite having a $165 million net worth, Scarlett Johansson says work-life balance doesn’t exist—and the first step to success is admitting that
Success
Despite having a $165 million net worth, Scarlett Johansson says work-life balance doesn’t exist—and the first step to success is admitting that
By Preston ForeMay 13, 2026
3 days ago
Nearly 50,000 Lake Tahoe residents have to find a new power source after their energy source looks to redirect lines to data centers
Travel & Leisure
Nearly 50,000 Lake Tahoe residents have to find a new power source after their energy source looks to redirect lines to data centers
By Catherina GioinoMay 12, 2026
4 days ago
Current price of oil as of May 15, 2026
Personal Finance
Current price of oil as of May 15, 2026
By Joseph HostetlerMay 15, 2026
20 hours ago
The airplane fuel shortage is a myth propagated by airlines who want to cancel unprofitable flights, says private jet CEO
Energy
The airplane fuel shortage is a myth propagated by airlines who want to cancel unprofitable flights, says private jet CEO
By Jim EdwardsMay 14, 2026
2 days ago
Top economist says $39 trillion national debt leaves government worse prepared for recession than ever
Economy
Top economist says $39 trillion national debt leaves government worse prepared for recession than ever
By Eva RoytburgMay 14, 2026
2 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.