Death Tax Repeal Act
Bill: H.R.1712 | Sponsor: Rep. Smith, Jason (R-MO)
Policy area: Taxation

Summary:
Death Tax Repeal Act
This bill repeals the estate and generation-skipping transfer taxes. It also makes conforming amendments related to the gift tax.

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 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''.

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

    (a) Estate Tax Repeal.--
            (1) In general.--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.
    ``(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--
            ``(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.''.
            (2) Clerical amendment.--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.''.
    (b) Generation-Skipping Transfer Tax Repeal.--
            (1) In general.--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.''.
            (2) Clerical amendment.--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.''.
    (c) Conforming Amendments Related to Gift Tax.--
            (1) 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 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.''.

            (2) Lifetime gift exemption.--
                    (A) 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''.
                    (B) 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.''.
            (3) Other conforming amendments related to gift tax.--
                    (A) The heading for section 2505 of such Code is 
                amended by striking ``unified''.
                    (B) 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.''.
                    (C) Section 2801(a)(1) of such Code is amended by 
                striking ``section 2001(c) as in effect on the date of 
                such receipt'' and inserting ``section 2502(a)(2)''.
    (d) Effective Date.--The amendments made by this section shall 
apply to estates of decedents dying, generation-skipping transfers, and 
gifts made, on or after the date of the enactment of this Act.
    (e) 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 
        two 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.
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