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Inheritance tax hits chopping block as more than 200 Republicans push for repeal

FIRST ON FOX: Republican lawmakers are mounting a massive effort to repeal the federal inheritance tax, colloquially known as the "death tax."

Rep. Randy Feenstra, R-Iowa, is leading more than 170 House Republicans on the "Death Tax Repeal Act," which is also backed by the House’s top tax writer, Ways & Means Chairman Jason Smith, R-Mo.

An inheritance or estate tax is levied upon the beneficiary who receives assets upon a person's death. Republicans have long criticized the estate tax as a needless financial burden on grieving families, particularly hitting small family-owned businesses.

It comes as Republicans work on extending President Donald Trump’s 2017 Tax Cuts and Jobs Act, whose provisions expire at the end of this year. Among the measures sunsetting in 2026 is a doubling of the estate tax exemption.

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Supporters of the federal estate tax point out that it affects a relatively small number of estates. Penalties are triggered for estates worth roughly $13.9 million at the time of death, according to the latest IRS data.

A counterpart bill in the Senate is being led by Majority Leader John Thune, R-S.D., and is backed by 44 senators. 

Both Feenstra and Thune argued it was an unnecessary tax that unfairly affected family farms and small businesses in their home states of Iowa, South Dakota and elsewhere.

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"The death tax is an egregious double tax that unfairly targets American family farms and small businesses and directly threatens long-held farming traditions in rural Iowa and across the country," Feenstra told Fox News Digital. "It is ridiculous that the federal government sends grieving families a massive tax bill when a loved one passes away."

He said it amounted to "double taxation."

"Family farms and ranches play a vital role in our economy and are the lifeblood of rural communities in South Dakota," Thune told Fox News Digital.

"Losing even one of them to the death tax is one too many. It’s time to put an end to this punishing, burdensome tax once and for all so that family farms, ranches and small businesses can grow and thrive without costly estate planning or massive tax burdens that can threaten their viability."

If Republicans fail to extend Trump’s tax cuts before the end of this year, the estate tax would affect any estates worth roughly $7 million or more, according to Modern Wealth Law.

House Ways & Means Committee Republicans shared a memo late last year that said everyday American households could see taxes rise by over 20% if the tax cuts expired.

Feenstra and Thune’s bill would abolish the tax altogether, however.

Trump can make government tell taxpayers how much unions cost them

No one knows how much taxpayers spend on bargaining with federal labor unions, and President-elect Donald Trump can right that wrong. Building on reforms from his first administration and with support from the new Department of Government Efficiency, he could direct every federal agency to report how much it spends dealing with government labor unions, something no agency has ever done. Disclosure would provide transparency and accountability for the American people, who would surely be shocked to learn what the federal government is bargaining over and how much it costs. 

As President Ronald Reagan’s first term director of the U.S. Office of Personnel Management (OPM), I saw firsthand how costly the federal collective bargaining process is to taxpayers — and how it’s almost entirely out of the public eye. Trump knows this is a problem, too, having issued an executive order in 2018 directing federal agencies to disclose union perks, which OPM calculated have $163 million annually. 

Yet that executive order — which President Joe Biden rescinded immediately after taking office — was just a start. It’s even more important to examine what’s very likely a larger cost to taxpayers: How much the federal bureaucracy spends negotiating with unions, managing union contracts and otherwise bargaining with unions in the federal workforce, which is over 1 million taxpayer-funded workers strong. 

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To be sure, the union perks deserve attention. Most notably, union representatives often get to do union work like negotiating contracts or fighting disciplinary action on the taxpayer’s dime. Some federally paid workers spend 100% of their time doing union-related work, which means these public servants aren’t serving the public.  

Unions also routinely get free or discounted access to federal property. At the Department of Veterans Affairs Medical Center in Salem, Virginia, a government union received half a hospital wing — more than 5,000 square feet, with a kitchen, private bathrooms and outdoor patio, mostly for the union president’s benefit. 

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Yet the cost of bargaining deserves just as much attention. What little information exists paints a picture of significant spending on picayune matters. Last fall, North Carolina Republican Rep. Virginia Foxx, then-chairwoman of the House Committee on the Education and the Workforce, documented how government unions draw out negotiations with federal agencies.  

That includes haggling over the height of cubicle desk panels, demanding designated smoking areas on tobacco-free federal property and recognizing employees’ right to wear spandex. Americans pay for every second that federal officials sit across from their union counterparts arguing about such issues, as well as all the related travel expenses, paperwork and legal hoop-jumping. 

A new report from the Institute for the American Worker, titled "Transparency Needed in the Process of Federal Collective Bargaining," sheds further light on these costs. The institute sent Freedom of Information Act requests to 28 federal agencies seeking data on expenditures related to collective bargaining. Twenty-one responded, though none had complete records.  

The Small Business Administration spent more than $6 million on salary for staff involved in collective bargaining in 2022 and 2023. The Department of Labor spent more than $1 million in travel-related costs. Considering there are hundreds of federal agencies, these numbers are a fraction of the total cost to taxpayers. 

For the sake of taxpayers, the facts must come to light. Trump can deliver real transparency by requiring agencies to annually disclose how much they spend on federal collective bargaining and the impact of such spending on government efficiency and effectiveness. Americans deserve to know how much they pay for negotiations with unions over wearing spandex, smoking cigarettes, and everything else that has nothing to do with public service. 

NY lawmakers demand subway chief's ouster after comment dismissive of crime issue: 'In people's heads'

New York lawmakers called for the governor-appointed chairman of the New York City transit system to be fired amid accusations he downplayed a rash of subway crime to praise new Manhattan tolls that are aimed at driving commuters underground.

In comments on a Bloomberg podcast, MTA Chairman Janno Lieber argued that crime on the MTA has declined and that the recent viral incidents are giving an impression of a system-wide safety crisis.

"The overall stats are positive. Last year, we [had] actually 12.5% less crime than 2019 . . . , " he said.

"But there's no question that some of these high-profile incidents; terrible attacks, have gotten in people's heads and made the whole system feel less safe." 

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Rep. Michael Lawler, R-N.Y., shared a clip of Lieber ceremonially unveiling one of the new "Congestion Pricing" setups near Lincoln Center and said the agency "needs an enema; starting with Janno Lieber."

"Imagine being such an a--hole as to celebrate screwing New Yorkers out of their hard-earned money just for the privilege to drive to work," Lawler wrote, adding that Hochul "needs to be defeated in 2026."

Lieber ripped Lawler in response, telling MSNBC that the Rockland County lawmaker was dabbling in "grievance politics."

Lieber claimed that a plurality of Lawler’s constituents – in bedroom communities 30 miles north of the city – already rely on mass transit and that only "one percent" make the daily drive down the Palisades to the "congestion-pricing" zone.

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New York’s new $9 toll to enter any part of Manhattan below Central Park has enraged commuters, as well as residents within its bounds.

Commuters from Long Island found themselves bottlenecked in trying to access the last unaffected entry to Manhattan – the Upper Level of the Queensboro Bridge.

One East Side luxury building's exit also unintentionally forced residents through a toll gantry, even if they are trying to go uptown; away from the zone, while outer neighborhoods braced for a deluge of suburbanites looking for parking to avoid the toll.

New York Senate Deputy Minority Leader Andrew Lanza, R-Staten Island, torched Lieber:

"Janno: pull your head out of your piles of statistics, get out from behind your computer, and walk a mile in your riders’ shoes before you ignore, dismiss and insult them," Lanza said.

"The people of this state and city deserve the truth and real solutions, not eggheads trying to convince themselves they’re doing a good job."

Sen. Bill Weber of Valley Cottage added: "Albany Democrats claim congestion pricing is to reduce traffic congestion, but at what cost? It punishes everyday people—working parents, firefighters, seniors going to doctor's appointments, and those who already struggle to make ends meet."

"For them, this isn’t just a toll; it’s another obstacle in their daily lives. Tell me, how is that progressive?" he asked.

Sen. Steve Rhoads of Nassau previously quipped that the MTA’s acronym stands for "Money Thrown Away" and said this week that his constituents who rely on trains like the LIRR have grown distrustful of the agency.

"[Lieber] has no idea what it is to be a working-class New Yorker," Rhoads said. "While affordability and safety are huge concerns for real people, they are abstract concepts for him."

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Lieber was previously an executive at Silverstein Properties — recently overseeing a World Trade Center project — a transportation adviser to President Bill Clinton and Mayor Ed Koch, and a journalist for the New Republic. 

He was also the MTA’s capital development officer under Gov. Andrew Cuomo.

Cuomo, who still strongly supports the congestion pricing plan, recently told Fox News Digital through a spokesman that he, however, has reservations about whether now is the right time to activate the tolls – given the lack of confidence in subway safety and changes in the city since the COVID-19 pandemic.

"It is undeniable that New York is in a dramatically different place today than it was in 2019, and without a study forecasting its consequences based on facts, not politics, it could do more harm than good to New York City's recovery," Cuomo spokesman Rich Azzopardi said last week.

State Sen. Alexis Weik, R-Suffolk, called the video of Lieber’s Broadway sign-reveal "a despicable show of glee and greed" and called for a financial review board to scrutinize the transit agency’s books.

In response to the slew of calls for Lieber's ouster, MTA Chief of Policy & External Relations John J. McCarthy defended the transit boss.

"Under Chair Lieber’s leadership, the MTA has added service, opened new terminals and provided record on-time performance for their constituents on Long Island and the Hudson Valley, while delivering the most reliable subway service in a dozen years," McCarthy said.

"But apparently, none of that prevents out-of-touch politicians from bloviating."

Washington state Democrats accidentally email their 'radical' tax plan to entire Senate

Washington state Democrats appeared to have accidentally emailed their sweeping revenue plans and internal talking points on tax hikes to the entirety of the upper chamber's members in Olympia, Fox News has learned.

Property tax hikes and a new double-digit tax on firearms are among proposals Washington state Democrats are considering, according to materials originally disseminated to all members by Washington Senate Deputy Floor Leader Noel Frame, D-Seattle, in late December and later obtained by Fox News Digital. 

A document titled "2025 Revenue Options" and a PowerPoint presentation describing how to talk to constituents in defense of the plan were included in the messages.

The document lists proposed figures for an 11% tax on ammunition and firearms, reclassifying storage unit rentals as a retail transaction and a lift on the property tax levy lid for certain Washingtonians.

A PowerPoint slide, highlighted by Seattle radio host Jason Rantz, described the "Best way to talk taxes" — with a chart of do’s and don’ts for lawmakers.

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Do say: "Pay what they owe" — but Don’t say: "Tax the rich" or "pay their fair share" because "taxes aren’t a punishment," the graph read.

It also suggested using the terms "funding," "providing" and "ensuring" when describing the apparent benefits of tax hikes, rather than the term "investing in [X]."

"Avoid centering the tax or talking in vague terms about ‘the economy’ or ‘education.’"

One of the new proposals is that of a "capital assets ownership tax."

It is described as similar to property taxes, but instead would extend the real estate-type tax to holdings in stocks, bonds and other financial instruments.

"We can ensure that extremely wealthy Washingtonians are taxed on their assets just like middle-class families are already taxed on theirs," the slide reads.

Another line directs lawmakers to proverbially "identify the villain" that is blocking "progress" and lay out "how we can take action to solve the issue."

"We have an upside-down tax code that benefits big corporations and the wealthiest few, that was written 100 years ago and desperately needs an update for the 21st century. If we ensure Washington’s wealthiest pay what they truly owe in taxes, the rest of us will have what we need — like affordable health care, housing, and food."

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Rantz said in a column for MyNorthwest.com that the plans accidentally shared present a "direct contradiction" to promises from Democrats during the election cycle and lay out 10 total new taxes on residents.

"These proposals come at a time when the state has seen years of record revenue," Rantz said, going on to claim some of the "tax schemes" may also be unconstitutional.

He added that capital gains taxes actually discourage growth and potentially lead to reduced job opportunities for the same workers pro-tax Democrats claim to want to help.

One example he presented was the departure of Amazon founder Jeffrey Bezos from Washington state. Upon establishing his new Florida residency, one of America’s richest men saved about $1 billion in taxes that also no longer go toward funding the Evergreen State’s programs.

Rantz added that the Washington state Democratic electorate often decries the affordability crisis but then goes on to re-elect the same politicians that exacerbate it.

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Additionally, as Democratic Gov.-elect Robert Ferguson is set to take office later this month, State Rep. Travis Couture, R-Allyn, slammed outgoing Gov. Jay Inslee’s 2025 budget proposal.

"This budget is not a serious proposal," said Couture, the House budget panel’s top Republican.

"Our state has a spending problem, not a revenue problem," he said.

Fox News Digital has reached out to Frame for comment but did not hear back by publication time.

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