Death Tax Repeal Act of 2023

Subjects: Taxation

Summary:  <p><strong>Death Tax Repeal Act</strong> <b>of 2023</b></p> <p>This bill repeals the estate and generation-skipping transfer taxes. It also makes conforming amendments related to the gift tax. </p>

<html><body><pre>[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 1108 Introduced in Senate (IS)]

&lt;DOC&gt;






118th CONGRESS
  1st Session
                                S. 1108

  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 30, 2023

Mr. Thune (for himself, Mr. Barrasso, Mrs. Blackburn, Mr. Boozman, Mr. 
 Braun, Mrs. Britt, Mr. Budd, Mrs. Capito, Mr. Cornyn, Mr. Cotton, Mr. 
 Cramer, Mr. Crapo, Mr. Cruz, Mr. Daines, Ms. Ernst, Mrs. Fischer, Mr. 
 Graham, Mr. Grassley, Mr. Hagerty, Mr. Hawley, Mr. Hoeven, Mrs. Hyde-
Smith, Mr. Johnson, Mr. Kennedy, Mr. Lankford, Mr. Lee, Ms. Lummis, Mr. 
   Marshall, Mr. McConnell, Mr. Moran, Mr. Mullin, Mr. Ricketts, Mr. 
 Risch, Mr. Rounds, Mr. Rubio, Mr. Schmitt, Mr. Scott of Florida, Mr. 
 Scott of South Carolina, Mr. Tillis, Mr. Tuberville, and Mr. Wicker) 
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.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Death Tax Repeal Act of 2023''.

SEC. 2. REPEAL OF ESTATE AND GENERATION-SKIPPING TRANSFER TAXES.

    (a) Estate Tax Repeal.--Subchapter C of chapter 11 of subtitle B of 
the Internal Revenue Code of 1986 is amended by adding at the end the 
following new section:

``SEC. 2210. TERMINATION.

    ``(a) In General.--Except as provided in subsection (b), this 
chapter shall not apply to the estates of decedents dying on or after 
the date of the enactment of the Death Tax Repeal Act of 2023.
    ``(b) Certain Distributions From Qualified Domestic Trusts.--In 
applying section 2056A with respect to the surviving spouse of a 
decedent dying before the date of the enactment of the Death Tax Repeal 
Act of 2023--
            ``(1) section 2056A(b)(1)(A) shall not apply to 
        distributions made after the 10-year period beginning on such 
        date, and
            ``(2) section 2056A(b)(1)(B) shall not apply on or after 
        such date.''.
    (b) Generation-Skipping Transfer Tax Repeal.--Subchapter G of 
chapter 13 of subtitle B of such Code is amended by adding at the end 
the following new section:

``SEC. 2664. TERMINATION.

    ``This chapter shall not apply to generation-skipping transfers on 
or after the date of the enactment of the Death Tax Repeal Act of 
2023.''.
    (c) Conforming Amendments.--
            (1) The table of sections for subchapter C of chapter 11 of 
        the Internal Revenue Code of 1986 is amended by adding at the 
        end the following new item:

``Sec. 2210. Termination.''.
            (2) The table of sections for subchapter G of chapter 13 of 
        such Code is amended by adding at the end the following new 
        item:

``Sec. 2664. Termination.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to the estates of decedents dying, and generation-skipping 
transfers, after the date of the enactment of this Act.

SEC. 3. MODIFICATIONS OF GIFT TAX.

    (a) Computation of Gift Tax.--Subsection (a) of section 2502 of the 
Internal Revenue Code of 1986 is amended to read as follows:
    ``(a) Computation of Tax.--
            ``(1) In general.--The tax imposed by section 2501 for each 
        calendar year shall be an amount equal to the excess of--
                    ``(A) a tentative tax, computed under paragraph 
                (2), on the aggregate sum of the taxable gifts for such 
                calendar year and for each of the preceding calendar 
                periods, over
                    ``(B) a tentative tax, computed under paragraph 
                (2), on the aggregate sum of the taxable gifts for each 
                of the preceding calendar periods.
            ``(2) Rate schedule.--


``If the amount with respect to which    The tentative
 the tentative tax to be computed is:.    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
                                          over $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 over $500,000.''.
 

    (b) Treatment of Certain Transfers in Trust.--Section 2511 of the 
Internal Revenue Code of 1986 is amended by adding at the end the 
following new subsection:
    ``(c) Treatment of Certain Transfers in Trust.--Notwithstanding any 
other provision of this section and except as provided in regulations, 
a transfer in trust shall be treated as a taxable gift under section 
2503, unless the trust is treated as wholly owned by the donor or the 
donor's spouse under subpart E of part I of subchapter J of chapter 
1.''.
    (c) Lifetime Gift Exemption.--
            (1) In general.--Paragraph (1) of section 2505(a) of the 
        Internal Revenue Code of 1986 is amended to read as follows:
            ``(1) the amount of the tentative tax which would be 
        determined under the rate schedule set forth in section 
        2502(a)(2) if the amount with respect to which such tentative 
        tax is to be computed were $10,000,000, reduced by''.
            (2) Inflation adjustment.--Section 2505 of such Code is 
        amended by adding at the end the following new subsection:
    ``(d) Inflation Adjustment.--
            ``(1) In general.--In the case of any calendar year after 
        2011, the dollar amount in subsection (a)(1) shall be increased 
        by an amount equal to--
                    ``(A) such dollar amount, multiplied by
                    ``(B) the cost-of-living adjustment determined 
                under section 1(f)(3) for such calendar year by 
                substituting `calendar year 2010' for `calendar year 
                2016' in subparagraph (A)(ii) thereof.
            ``(2) Rounding.--If any amount as adjusted under paragraph 
        (1) is not a multiple of $10,000, such amount shall be rounded 
        to the nearest multiple of $10,000.''.
    (d) Conforming Amendments.--
            (1) Section 2505(a) of such Code is amended by striking the 
        last sentence.
            (2) The heading for section 2505 of such Code is amended by 
        striking ``unified''.
            (3) The item in the table of sections for subchapter A of 
        chapter 12 of such Code relating to section 2505 is amended to 
        read as follows:

``Sec. 2505. Credit against gift tax.''.
    (e) Effective Date.--The amendments made by this section shall 
apply to gifts made on or after the date of the enactment of this Act.
    (f) Transition Rule.--
            (1) In general.--For purposes of applying sections 1015(d), 
        2502, and 2505 of the Internal Revenue Code of 1986, the 
        calendar year in which this Act is enacted shall be treated as 
        2 separate calendar years one of which ends on the day before 
        the date of the enactment of this Act and the other of which 
        begins on such date of enactment.
            (2) Application of section 2504(b).--For purposes of 
        applying section 2504(b) of the Internal Revenue Code of 1986, 
        the calendar year in which this Act is enacted shall be treated 
        as one preceding calendar period.
                                 &lt;all&gt;
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