Death Tax Repeal Act

I 117TH CONGRESS 1ST SESSION H. R. 1712 To amend the Internal Revenue Code of 1986 to repeal the estate and generation-skipping transfer taxes. IN THE HOUSE OF REPRESENTATIVES MARCH 9, 2021 Mr. SMITH of Missouri (for himself, Mr. BISHOP of Georgia, Mr. TAYLOR, Mr. BIGGS, Mr. STEUBE, Mr. DESJARLAIS, Mr. ALLEN, Mr. KELLY of Penn- sylvania, Mr. NORMAN, Mr. BURCHETT, Mr. DUNCAN, Mr. JOYCE of Pennsylvania, Mr. WESTERMAN, Mr. THOMPSON of Pennsylvania, Mr. PERRY, Mr. BANKS, Mr. KELLY of Mississippi, Mr. CALVERT, Mr. BISHOP of North Carolina, Mr. KINZINGER, Mr. HIGGINS of Louisiana, Mr. PALMER, Mr. CLINE, Mrs. WALORSKI, Mr. RODNEY DAVIS of Illi- nois, Mr. LONG, Mr. GIBBS, Mr. GRAVES of Missouri, Mr. BACON, Mr. GUEST, Mr. YOUNG, Mr. STIVERS, Mr. KELLER, Mr. ARRINGTON, Mr. KUSTOFF, Mrs. LESKO, Mrs. MILLER of West Virginia, Mr. COMER, Ms. FOXX, Mr. ROY, Mr. WILSON of South Carolina, Mr. LUETKEMEYER, Mr. WITTMAN, Mr. RESCHENTHALER, Mr. JOHNSON of Louisiana, Mr. KATKO, Mr. JACKSON, Mr. MAST, Mr. BARR, Mr. GUTHRIE, Mrs. HINSON, Mr. DAVIDSON, Mr. LAHOOD, Mr. FULCHER, Mr. BOST, Mr. ROUZER, Mr. HARRIS, Mr. HICE of Georgia, Mr. BUDD, Mr. BILIRAKIS, Mr. FEENSTRA, Mr. EMMER, Mr. CLOUD, Mr. CARTER of Georgia, Mr. SMITH of Nebraska, Mr. PENCE, Mr. MCCLINTOCK, Mr. BAIRD, Mr. NEWHOUSE, Mr. HILL, Mr. ROSENDALE, Mr. LATTA, Mr. SESSIONS, Mr. MANN, Mrs. STEEL, Ms. HERRELL, Mr. STEIL, Mr. GOSAR, Mrs. WAG- NER, Mr. HERN, Mr. HUIZENGA, Mr. ARMSTRONG, Mrs. RODGERS of Washington, Mr. TURNER, Mr. CARL, Mr. CRAWFORD, Mr. STAUBER, Mr. OWENS, Mr. CAWTHORN, Mr. HAGEDORN, Mr. BUCK, Mr. GAETZ, Mr. ROGERS of Alabama, Mr. CRENSHAW, Mrs. MCCLAIN, Mr. JORDAN, Mr. WOMACK, Mr. PFLUGER, Mr. GREEN of Tennessee, Mr. MOORE of Alabama, Mr. VALADAO, Mr. SMUCKER, Mrs. HARSHBARGER, Mr. GARBARINO, Mr. TIFFANY, Mr. AUSTIN SCOTT of Georgia, Mr. GARCIA of California, Mr. CURTIS, Mr. SIMPSON, Mr. FERGUSON, Mr. JOHNSON of Ohio, Mr. WEBER of Texas, Mr. NEHLS, Mrs. BICE of Oklahoma, Mr. BROOKS, Mr. FITZGERALD, Mr. NUNES, Mr. ROSE, Mrs. HARTZLER, Mr. MCCAUL, Mr. WILLIAMS of Texas, and Mr. BALDERSON) introduced the following bill; which was referred to the Committee on Ways and Means VerDate Sep 11 2014 02:25 Apr 28, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6652 E:\BILLS\H1712.IH H1712 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 1712 IH A BILL To amend the Internal Revenue Code of 1986 to repeal the estate and generation-skipping transfer taxes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Death Tax Repeal 4 Act’’. 5 SEC. 2. REPEAL OF ESTATE AND GENERATION-SKIPPING 6 TRANSFER TAXES. 7 (a) ESTATE TAX REPEAL.— 8 (1) IN GENERAL.—Subchapter C of chapter 11 9 of subtitle B of the Internal Revenue Code of 1986 10 is amended by adding at the end the following new 11 section: 12 ‘‘SEC. 2210. TERMINATION. 13 ‘‘(a) IN GENERAL.—Except as provided in subsection 14 (b), this chapter shall not apply to the estates of decedents 15 dying on or after the date of the enactment of the Death 16 Tax Repeal Act. 17 ‘‘(b) CERTAIN DISTRIBUTIONS FROM QUALIFIED 18 DOMESTIC TRUSTS.—In applying section 2056A with re- 19 spect to the surviving spouse of a decedent dying before 20 the date of the enactment of the Death Tax Repeal Act— 21 VerDate Sep 11 2014 02:25 Apr 28, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H1712.IH H1712 kjohnson on DSK79L0C42PROD with BILLS 3 •HR 1712 IH ‘‘(1) section 2056A(b)(1)(A) shall not apply to 1 distributions made after the 10-year period begin- 2 ning on such date, and 3 ‘‘(2) section 2056A(b)(1)(B) shall not apply on 4 or after such date.’’. 5 (2) CLERICAL AMENDMENT.—The table of sec- 6 tions for subchapter C of chapter 11 of the Internal 7 Revenue Code of 1986 is amended by adding at the 8 end the following new item: 9 ‘‘Sec. 2210. Termination.’’. (b) GENERATION-SKIPPING TRANSFER TAX RE- 10 PEAL.— 11 (1) IN GENERAL.—Subchapter G of chapter 13 12 of subtitle B of such Code is amended by adding at 13 the end the following new section: 14 ‘‘SEC. 2664. TERMINATION. 15 ‘‘This chapter shall not apply to generation-skipping 16 transfers on or after the date of the enactment of the 17 Death Tax Repeal Act.’’. 18 (2) CLERICAL AMENDMENT.—The table of sec- 19 tions for subchapter G of chapter 13 of such Code 20 is amended by adding at the end the following new 21 item: 22 ‘‘Sec. 2664. Termination.’’. (c) CONFORMING AMENDMENTS RELATED TO GIFT 23 TAX.— 24 VerDate Sep 11 2014 02:25 Apr 28, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H1712.IH H1712 kjohnson on DSK79L0C42PROD with BILLS 4 •HR 1712 IH (1) COMPUTATION OF GIFT TAX.—Subsection 1 (a) of section 2502 of the Internal Revenue Code of 2 1986 is amended to read as follows: 3 ‘‘(a) COMPUTATION OF TAX.— 4 ‘‘(1) IN GENERAL.—The tax imposed by section 5 2501 for each calendar year shall be an amount 6 equal to the excess of— 7 ‘‘(A) a tentative tax, computed under para- 8 graph (2), on the aggregate sum of the taxable 9 gifts for such calendar year and for each of the 10 preceding calendar periods, over 11 ‘‘(B) a tentative tax, computed under para- 12 graph (2), on the aggregate sum of the taxable 13 gifts for each of the preceding calendar periods. 14 ‘‘(2) RATE SCHEDULE.— 15 ‘‘If the amount with respect to which the tentative tax to be computed is: The tentative tax is: Not over $10,000 .......................... 18% of such amount. Over $10,000 but not over $20,000. $1,800, plus 20% of the excess over $10,000. Over $20,000 but not over $40,000. $3,800, plus 22% of the excess over $20,000. Over $40,000 but not over $60,000. $8,200, plus 24% of the excess over $40,000. Over $60,000 but not over $80,000. $13,000, plus 26% of the excess over $60,000. Over $80,000 but not over $100,000. $18,200, plus 28% of the excess over $80,000. Over $100,000 but not over $150,000. $23,800, plus 30% of the excess over $100,000. Over $150,000 but not over $250,000. $38,800, plus 32% of the excess of $150,000. Over $250,000 but not over $500,000. $70,800, plus 34% of the excess over $250,000. Over $500,000 ............................... $155,800, plus 35% of the excess of $500,000.’’. VerDate Sep 11 2014 02:25 Apr 28, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6211 E:\BILLS\H1712.IH H1712 kjohnson on DSK79L0C42PROD with BILLS 5 •HR 1712 IH (2) LIFETIME GIFT EXEMPTION.— 1 (A) IN GENERAL.—Paragraph (1) of sec- 2 tion 2505(a) of the Internal Revenue Code of 3 1986 is amended to read as follows: 4 ‘‘(1) the amount of the tentative tax which 5 would be determined under the rate schedule set 6 forth in section 2502(a)(2) if the amount with re- 7 spect to which such tentative tax is to be computed 8 were $10,000,000, reduced by’’. 9 (B) INFLATION ADJUSTMENT.—Section 10 2505 of such Code is amended by adding at the 11 end the following new subsection: 12 ‘‘(d) INFLATION ADJUSTMENT.— 13 ‘‘(1) IN GENERAL.—In the case of any calendar 14 year after 2011, the dollar amount in subsection 15 (a)(1) shall be increased by an amount equal to— 16 ‘‘(A) such dollar amount, multiplied by 17 ‘‘(B) the cost-of-living adjustment deter- 18 mined under section 1(f)(3) for such calendar 19 year by substituting ‘calendar year 2010’ for 20 ‘calendar year 2016’ in subparagraph (A)(ii) 21 thereof. 22 ‘‘(2) ROUNDING.—If any amount as adjusted 23 under paragraph (1) is not a multiple of $10,000, 24 VerDate Sep 11 2014 02:25 Apr 28, 2021 Jkt 019200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H1712.IH H1712 kjohnson on DSK79L0C42PROD with BILLS 6 •HR 1712 IH such amount shall be rounded to the nearest mul- 1 tiple of $10,000.’’. 2 (3) OTHER CONFORMING AMENDMENTS RE- 3 LATED TO GIFT TAX.— 4 (A) The heading for section 2505 of such 5 Code is amended by striking ‘‘UNIFIED’’. 6 (B) The item in the table of sections for 7 subchapter A of chapter 12 of such Code relat- 8 ing to section 2505 is amended to read as fol- 9 lows: 10 ‘‘Sec. 2505. Credit against gift tax.’’. (C) Section 2801(a)(1) of such Code is 11 amended by striking ‘‘section 2001(c) as in ef- 12 fect on the date of such receipt’’ and inserting 13 ‘‘section 2502(a)(2)’’. 14 (d) EFFECTIVE DATE.—The amendments made by 15 this section shall apply to estates of decedents dying, gen- 16 eration-skipping transfers, and gifts made, on or after the 17 date of the enactment of this Act. 18 (e) TRANSITION RULE.— 19 (1) IN GENERAL.—For purposes of applying 20 sections 1015(d), 2502, and 2505 of the Internal 21 Revenue Code of 1986, the calendar year in which 22 this Act is enacted shall be treated as two separate 23 calendar years one of which ends on the day before 24 VerDate Sep 11 2014 02:25 Apr 28, 2021 Jkt 019200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H1712.IH H1712 kjohnson on DSK79L0C42PROD with BILLS 7 •HR 1712 IH the date of the enactment of this Act and the other 1 of which begins on such date of enactment. 2 (2) APPLICATION OF SECTION 2504(b).—For 3 purposes of applying section 2504(b) of the Internal 4 Revenue Code of 1986, the calendar year in which 5 this Act is enacted shall be treated as one preceding 6 calendar period. 7 Æ VerDate Sep 11 2014 02:25 Apr 28, 2021 Jkt 019200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6301 E:\BILLS\H1712.IH H1712 kjohnson on DSK79L0C42PROD with BILLS