New research suggests the TCJA’s estate tax provisions warrant special attention and reveal a unique opportunity for policymakers. 

As policymakers look for ways to address large and persistent federal deficits, shoring up the estate tax should be under consideration. It could generate more federal revenue, boost taxpayer equity, and improve economic mobility.   

A new Tax Policy Center analysis finds that raising the cap to $20,000 would increase the federal debt by about $225 billion from 2025-2034, assuming all expiring provisions of the 2017 Tax Cuts and Jobs Act (TCJA) are extended permanently. Nearly all the benefit would go to households making about $200,000 or more.