II 

112TH CONGRESS 

2D SESSION S. 2242 

To amend the Internal Revenue Code of 1986 to repeal the estate and 

generation-skipping transfer taxes, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MARCH 28, 2012 

Mr. THUNE (for himself, Mr. RUBIO, Mr. BOOZMAN, Mr. LUGAR, Mr. VITTER, 

Mr. ISAKSON, Mr. KYL, Mr. HELLER, Mr. MORAN, Mr. ROBERTS, Mr. 

INHOFE, Mr. ENZI, Mr. GRASSLEY, Mr. LEE, Mr. PAUL, Mr. BLUNT, 

Mr. MCCAIN, Mr. BARRASSO, Mr. CORNYN, Mr. MCCONNELL, Mr. 

CRAPO, Mr. HOEVEN, Mr. KIRK, Mr. WICKER, Mrs. HUTCHISON, Mr. 

COCHRAN, Mr. BURR, Mr. SESSIONS, Mr. TOOMEY, Ms. AYOTTE, Mr. 

RISCH, Mr. COBURN, Mr. JOHANNS, Mr. DEMINT, and Mr. COATS) introduced the following bill; which was read twice and referred to the Committee on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to repeal 

the estate and generation-skipping transfer taxes, and 

for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Death Tax Repeal Per5 manency Act of 2012’’. 


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1 SEC. 2. REPEAL OF ESTATE AND GENERATION-SKIPPING 

2 TRANSFER TAXES. 

3 (a) ESTATE TAX REPEAL.—Subchapter C of chapter 

4 11 of subtitle B of the Internal Revenue Code of 1986 

5 is amended by adding at the end the following new section: 

6 ‘‘SEC. 2210. TERMINATION. 

7 ‘‘(a) IN GENERAL.—Except as provided in subsection 

8 (b), this chapter shall not apply to the estates of decedents 

9 dying on or after the date of the enactment of the Death 

10 Tax Repeal Permanency Act of 2012. 

11 ‘‘(b) CERTAIN DISTRIBUTIONS FROM QUALIFIED

12 DOMESTIC TRUSTS.—In applying section 2056A with re13 spect to the surviving spouse of a decedent dying before 

14 the date of the enactment of the Death Tax Repeal Per15 manency Act of 2012— 

16 ‘‘(1) section 2056A(b)(1)(A) shall not apply to 

17 distributions made after the 10-year period begin18 ning on such date, and 

19 ‘‘(2) section 2056A(b)(1)(B) shall not apply on 

20 or after such date.’’. 

21 (b) GENERATION-SKIPPING TRANSFER TAX RE22 PEAL.—Subchapter G of chapter 13 of subtitle B of such 

23 Code is amended by adding at the end the following new 

24 section: 


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1 ‘‘SEC. 2664. TERMINATION. 

2 ‘‘This chapter shall not apply to generation-skipping 

3 transfers on or after the date of the enactment of the 

4 Death Tax Repeal Permanency Act of 2012.’’. 

5 (c) CONFORMING AMENDMENTS.— 

6 (1) The table of sections for subchapter C of 

7 chapter 11 is amended by adding at the end the fol8 lowing new item: 

‘‘Sec. 2210. Termination.’’. 

9 (2) The table of sections for subchapter G of 

10 chapter 13 is amended by adding at the end the fol11 lowing new item: 

‘‘Sec. 2664. Termination.’’. 

12 (d) RESTORATION OF PRE-EGTRRA PROVISIONS

13 NOT APPLICABLE.— 

14 (1) IN GENERAL.—Section 301 of the Tax Re15 lief, Unemployment Insurance Reauthorization, and 

16 Job Creation Act of 2010 shall not apply to estates 

17 of decedents dying, and transfers made, on or after 

18 the date of the enactment of this Act. 

19 (2) EXCEPTION FOR STEPPED-UP BASIS.— 

20 Paragraph (1) shall not apply to the provisions of 

21 law amended by subtitle E of title V of the Eco22 nomic Growth and Tax Relief Reconciliation Act of 

23 2001 (relating to carryover basis at death; other 

24 changes taking effect with repeal). 


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1 (e) SUNSET NOT APPLICABLE.— 

2 (1) Section 901 of the Economic Growth and 

3 Tax Relief Reconciliation Act of 2001 shall not 

4 apply to title V of such Act in the case of estates 

5 of decedents dying, and transfers made, on or after 

6 the date of the enactment of this Act. 

7 (2) Section 304 of the Tax Relief, Unemploy8 ment Insurance Reauthorization, and Job Creation 

9 Act of 2010 is hereby repealed. 

10 (f) EFFECTIVE DATE.—The amendments made by 

11 this section shall apply to the estates of decedents dying, 

12 and generation-skipping transfers, after the date of the 

13 enactment of this Act. 

14 SEC. 3. MODIFICATIONS OF GIFT TAX. 

15 (a) COMPUTATION OF GIFT TAX.—Subsection (a) of 

16 section 2502 of the Internal Revenue Code of 1986 is 

17 amended to read as follows: 

18 ‘‘(a) COMPUTATION OF TAX.— 

19 ‘‘(1) IN GENERAL.—The tax imposed by section 

20 2501 for each calendar year shall be an amount 

21 equal to the excess of— 

22 ‘‘(A) a tentative tax, computed under para23 graph (2), on the aggregate sum of the taxable 

24 gifts for such calendar year and for each of the 

25 preceding calendar periods, over 


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1 ‘‘(B) a tentative tax, computed under para2 graph (2), on the aggregate sum of the taxable 

3 gifts for each of the preceding calendar periods. 

4 ‘‘(2) RATE SCHEDULE.— 

‘‘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.’’. 

5 (b) TREATMENT OF CERTAIN TRANSFERS IN

6 TRUST.—Section 2511 (relating to transfers in general) 

7 is amended by adding at the end the following new sub8 section: 

9 ‘‘(c) TREATMENT OF CERTAIN TRANSFERS IN

10 TRUST.—Notwithstanding any other provision of this sec11 tion and except as provided in regulations, a transfer in 


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1 trust shall be treated as a taxable gift under section 2503, 

2 unless the trust is treated as wholly owned by the donor 

3 or the donor’s spouse under subpart E of part I of sub4 chapter J of chapter 1.’’. 

5 (c) LIFETIME GIFT EXEMPTION.—Paragraph (1) of 

6 section 2505(a) of the Internal Revenue Code of 1986 is 

7 amended to read as follows: 

8 ‘‘(1) the amount of the tentative tax which 

9 would be determined under the rate schedule set 

10 forth in section 2502(a)(2) if the amount with re11 spect to which such tentative tax is to be computed 

12 were $5,000,000, reduced by’’. 

13 (d) CONFORMING AMENDMENTS.— 

14 (1) Section 2505(a) of such Code is amended 

15 by striking the last sentence. 

16 (2) The heading for section 2505 of such Code 

17 is amended by striking ‘‘UNIFIED’’. 

18 (3) The item in the table of sections for sub19 chapter A of chapter 12 of such Code relating to 

20 section 2505 is amended to read as follows: 

‘‘Sec. 2505. Credit against gift tax.’’. 

21 (e) EFFECTIVE DATE.—The amendments made by 

22 this section shall apply to gifts made on or after the date 

23 of the enactment of this Act. 

24 (f) TRANSITION RULE.— 


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1 (1) IN GENERAL.—For purposes of applying 

2 sections 1015(d), 2502, and 2505 of the Internal 

3 Revenue Code of 1986, the calendar year in which 

4 this Act is enacted shall be treated as 2 separate cal5 endar years one of which ends on the day before the 

6 date of the enactment of this Act and the other of 

7 which begins on such date of enactment. 

8 (2) APPLICATION OF SECTION 2504(b).—For 

9 purposes of applying section 2504(b) of the Internal 

10 Revenue Code of 1986, the calendar year in which 

11 this Act is enacted shall be treated as one preceding 

12 calendar period. 

Æ 


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