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) intro-
duced 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 consider-
ation 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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Estate Tax Rate Re-
duction Act’’. 
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SEC. 2. REDUCTION OF RATE OF TAX ON ESTATES, GIFTS, 
AND GENERATION-SKIPPING TRANSFERS. 
(a) IN GENERAL.—Section 2001 of the Internal Rev-
enue Code of 1986 is amended— 
(1) by striking subsection (c) and inserting the 
following: 
‘‘(c) RATE OF TAX.—For purposes of determining 
the tentative tax, the rate of tax shall be 20 percent of 
the amount with respect to which the tentative tax is com-
puted.’’; and 
(2) in subsection (g)(1), by striking ‘‘rates of 
tax under subsection (c)’’ and inserting ‘‘rate of tax 
under subsection (c)’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 2056A(b)(2) of the Internal Rev-
enue Code of 1986 is amended— 
(A) in subparagraph (B)(i), by striking 
‘‘highest’’; and 
(B) in subparagraph (C), by striking 
‘‘highest’’. 
(2) Section 2107(a) of such Code is amended 
by striking ‘‘the table contained in’’ and inserting 
‘‘the rate of tax under’’. 
(3) Section 2201(a) of such Code is amended 
by striking ‘‘the rate schedule set forth in section 
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2001(c)’’ and inserting ‘‘the rate of tax under sec-
tion 2001(c)’’. 
(4) Section 2641 of such Code is amended to 
read as follows: 
‘‘SEC. 2641. APPLICABLE RATE. 
‘‘For purposes of this chapter, the term ‘applicable 
rate’ means, with respect to any generation-skipping 
transfer, the product of— 
‘‘(1) the rate imposed by section 2001 on the 
estates of decedents dying at the time of the taxable 
distribution, taxable termination, or direct skip, as 
the case may be, and 
‘‘(2) the inclusion ratio with respect to the 
transfer.’’. 
(5) Section 2801(a)(1) of such Code is amended 
by striking ‘‘the highest rate of tax specified in the 
table contained in’’ and inserting ‘‘the rate of tax 
under’’. 
(6) Section 6601(j)(2)(A)(i) of such Code is 
amended by striking ‘‘the rate schedule set forth 
in’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to estates of decedents dying, gen-
eration-skipping transfers, and gifts made, after Decem-
ber 31, 2020. 
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(d) BUDGETARY EFFECTS.— 
(1) PAYGO SCORECARD.—The budgetary ef-
fects of this section shall not be entered on either 
PAYGO scorecard maintained pursuant to section 
4(d) of the Statutory Pay-As-You-Go Act of 2010 (2 
U.S.C. 933(d)). 
(2) SENATE
PAYGO
SCORECARD.—The budg-
etary effects of this section shall not be entered on 
any PAYGO scorecard maintained for purposes of 
section 4106 of H. Con. Res. 71 (115th Congress), 
the concurrent resolution on the budget for fiscal 
year 2018. 
Æ 
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