I 

117TH CONGRESS 

1ST SESSION H. R. 3178 

To amend the Internal Revenue Code of 1986 to reduce the rate of tax 

on estates, gifts, and generation-skipping transfers. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 13, 2021 

Mr. ARRINGTON (for himself, Mr. CUELLAR, and Mr. FLEISCHMANN) introduced the following bill; which was referred to the Committee on Ways 

and Means, and in addition to the Committee on the Budget, for a period 

to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee 

concerned 

A BILL 

To amend the Internal Revenue Code of 1986 to reduce 

the rate of tax on estates, gifts, and generation-skipping 

transfers. 

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 ‘‘Estate Tax Rate Re5 duction Act’’. 


kjohnson on DSK79L0C42PROD with BILLS
2 

•HR 3178 IH

1 SEC. 2. REDUCTION OF RATE OF TAX ON ESTATES, GIFTS, 

2 AND GENERATION-SKIPPING TRANSFERS. 

3 (a) IN GENERAL.—Section 2001 of the Internal Rev4 enue Code of 1986 is amended— 

5 (1) by striking subsection (c) and inserting the 

6 following: 

7 ‘‘(c) RATE OF TAX.—For purposes of determining 

8 the tentative tax, the rate of tax shall be 20 percent of 

9 the amount with respect to which the tentative tax is com10 puted.’’; and 

11 (2) in subsection (g)(1), by striking ‘‘rates of 

12 tax under subsection (c)’’ and inserting ‘‘rate of tax 

13 under subsection (c)’’. 

14 (b) CONFORMING AMENDMENTS.— 

15 (1) Section 2056A(b)(2) of the Internal Rev16 enue Code of 1986 is amended— 

17 (A) in subparagraph (B)(i), by striking 

18 ‘‘highest’’; and 

19 (B) in subparagraph (C), by striking 

20 ‘‘highest’’. 

21 (2) Section 2107(a) of such Code is amended 

22 by striking ‘‘the table contained in’’ and inserting 

23 ‘‘the rate of tax under’’. 

24 (3) Section 2201(a) of such Code is amended 

25 by striking ‘‘the rate schedule set forth in section 


kjohnson on DSK79L0C42PROD with BILLS
3 

•HR 3178 IH

1 2001(c)’’ and inserting ‘‘the rate of tax under sec2 tion 2001(c)’’. 

3 (4) Section 2641 of such Code is amended to 

4 read as follows: 

5 ‘‘SEC. 2641. APPLICABLE RATE. 

6 ‘‘For purposes of this chapter, the term ‘applicable 

7 rate’ means, with respect to any generation-skipping 

8 transfer, the product of— 

9 ‘‘(1) the rate imposed by section 2001 on the 

10 estates of decedents dying at the time of the taxable 

11 distribution, taxable termination, or direct skip, as 

12 the case may be, and 

13 ‘‘(2) the inclusion ratio with respect to the 

14 transfer.’’. 

15 (5) Section 2801(a)(1) of such Code is amended 

16 by striking ‘‘the highest rate of tax specified in the 

17 table contained in’’ and inserting ‘‘the rate of tax 

18 under’’. 

19 (6) Section 6601(j)(2)(A)(i) of such Code is 

20 amended by striking ‘‘the rate schedule set forth 

21 in’’. 

22 (c) EFFECTIVE DATE.—The amendments made by 

23 this section shall apply to estates of decedents dying, gen24 eration-skipping transfers, and gifts made, after Decem25 ber 31, 2020. 


kjohnson on DSK79L0C42PROD with BILLS
4 

•HR 3178 IH

1 (d) BUDGETARY EFFECTS.— 

2 (1) PAYGO SCORECARD.—The budgetary ef3 fects of this section shall not be entered on either 

4 PAYGO scorecard maintained pursuant to section 

5 4(d) of the Statutory Pay-As-You-Go Act of 2010 (2 

6 U.S.C. 933(d)). 

7 (2) SENATE PAYGO SCORECARD.—The budg8 etary effects of this section shall not be entered on 

9 any PAYGO scorecard maintained for purposes of 

10 section 4106 of H. Con. Res. 71 (115th Congress), 

11 the concurrent resolution on the budget for fiscal 

12 year 2018. 

Æ 


kjohnson on DSK79L0C42PROD with BILLS