How the Estate Tax Actually Affects Family Farms and Small Businesses

In Episode 91 of The Tax Policy Podcast, Lucas and Luna drill into a durable myth in American tax politics: that the federal estate tax routinely forces families to sell farms and small businesses to pay the tax bill. They walk through the actual exemption amounts in 2026 — roughly $13.6 million per person, $27.2 million per married couple — and examine IRS data on estate tax returns filed. The hosts break down how few estates actually owe any tax, how liquidity rules and payment plans work, and why the 'death tax' narrative persists despite the numbers. They also look at states with their own estate or inheritance taxes, like Massachusetts and New Jersey, where lower exemptions can create real pressure. Specific, data-driven, and myth-busting, this episode gives listeners one clear takeaway: the federal estate tax is not the threat to family businesses it's often portrayed as. #EstateTax #DeathTax #FamilyFarm #SmallBusiness #TaxPolicy #EstatePlanning #InheritanceTax #IRS #TaxExemption #StepUpInBasis #Liquidity #StateTax #MassachusettsEstateTax #NewJerseyInheritanceTax #Portability #Economics #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo