HR 1259 IHCommentsClose CommentsPermalink

112th CONGRESSCommentsClose CommentsPermalink

1st SessionCommentsClose CommentsPermalink

H. R. 1259CommentsClose CommentsPermalink

To amend the Internal Revenue Code of 1986 to repeal the estate and generation-skipping transfer taxes, and for other purposes.CommentsClose CommentsPermalink

IN THE HOUSE OF REPRESENTATIVESCommentsClose CommentsPermalink

March 30, 2011CommentsClose CommentsPermalink

Mr. BRADY of Texas (for himself, Mr. ROSS of Arkansas, Mrs. NOEM, Mr. BOREN, and Mr. NUNES) introduced the following bill; which was referred to the Committee on Ways and MeansCommentsClose CommentsPermalink

A BILLCommentsClose CommentsPermalink

To amend the Internal Revenue Code of 1986 to repeal the estate and generation-skipping transfer taxes, and for other purposes.CommentsClose CommentsPermalink

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

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘Death Tax Repeal Permanency Act of 2011’.CommentsClose CommentsPermalink

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:CommentsClose CommentsPermalink

‘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 Permanency Act of 2011.CommentsClose CommentsPermalink





‘(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 Permanency Act of 2011--CommentsClose CommentsPermalink





‘(1) section 2056A(b)(1)(A) shall not apply to distributions made after the 10-year period beginning on such date, andCommentsClose CommentsPermalink





‘(2) section 2056A(b)(1)(B) shall not apply on or after such date.’.CommentsClose CommentsPermalink





(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:CommentsClose CommentsPermalink

‘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 Permanency Act of 2011.’.CommentsClose CommentsPermalink





(c) Conforming Amendments-CommentsClose CommentsPermalink





(1) The table of sections for subchapter C of chapter 11 is amended by adding at the end the following new item:CommentsClose CommentsPermalink





‘Sec. 2210. Termination.’.CommentsClose CommentsPermalink





(2) The table of sections for subchapter G of chapter 13 is amended by adding at the end the following new item:CommentsClose CommentsPermalink





‘Sec. 2664. Termination.’.CommentsClose CommentsPermalink





(d) Restoration of Pre-EGTRRA Provisions Not Applicable-CommentsClose CommentsPermalink





(1) IN GENERAL- Section 301 of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 shall not apply to estates of decedents dying, and transfers made, on or after the date of the enactment of this Act.CommentsClose CommentsPermalink





(2) EXCEPTION FOR STEPPED-UP BASIS- Paragraph (1) shall not apply to the provisions of law amended by subtitle E of title V of the Economic Growth and Tax Relief Reconciliation Act of 2001 (relating to carryover basis at death; other changes taking effect with repeal).CommentsClose CommentsPermalink





(e) Sunset Not Applicable-CommentsClose CommentsPermalink





(1) Section 901 of the Economic Growth and Tax Relief Reconciliation Act of 2001 shall not apply to title V of such Act in the case of estates of decedents dying, and transfers made, on or after the date of the enactment of this Act.CommentsClose CommentsPermalink





(2) Section 304 of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 is hereby repealed.CommentsClose CommentsPermalink





(f) 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.CommentsClose CommentsPermalink

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:CommentsClose CommentsPermalink





‘(a) Computation of Tax-CommentsClose CommentsPermalink





‘(1) IN GENERAL- The tax imposed by section 2501 for each calendar year shall be an amount equal to the excess of--CommentsClose CommentsPermalink





‘(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, overCommentsClose CommentsPermalink





‘(B) a tentative tax, computed under paragraph (2), on the aggregate sum of the taxable gifts for each of the preceding calendar periods.CommentsClose CommentsPermalink





‘(2) RATE SCHEDULE-CommentsClose CommentsPermalink

-------------------------------------------------------------------------------- CommentsClose CommentsPermalink

-------------------------------------------------------------------------------- CommentsClose CommentsPermalink

                                                                                                                   CommentsClose CommentsPermalink

‘If the amount with respect to which the tentative tax to be computed is:                    The tentative tax is: CommentsClose CommentsPermalink

                                                                Not over $10,000                             18% of such amount. CommentsClose CommentsPermalink

                                               Over $10,000 but not over $20,000    $1,800, plus 20% of the excess over $10,000. CommentsClose CommentsPermalink

                                               Over $20,000 but not over $40,000    $3,800, plus 22% of the excess over $20,000. CommentsClose CommentsPermalink

                                               Over $40,000 but not over $60,000    $8,200, plus 24% of the excess over $40,000. CommentsClose CommentsPermalink

                                               Over $60,000 but not over $80,000   $13,000, plus 26% of the excess over $60,000. CommentsClose CommentsPermalink

                                              Over $80,000 but not over $100,000   $18,200, plus 28% of the excess over $80,000. CommentsClose CommentsPermalink

                                             Over $100,000 but not over $150,000  $23,800, plus 30% of the excess over $100,000. CommentsClose CommentsPermalink

                                             Over $150,000 but not over $250,000    $38,800, plus 32% of the excess of $150,000. CommentsClose CommentsPermalink

                                             Over $250,000 but not over $500,000  $70,800, plus 34% of the excess over $250,000. CommentsClose CommentsPermalink

                                                                   Over $500,000 $155,800, plus 35% of the excess of $500,000.’. CommentsClose CommentsPermalink

-------------------------------------------------------------------------------- CommentsClose CommentsPermalink

(b) Treatment of Certain Transfers in Trust- Section 2511 (relating to transfers in general) is amended by adding at the end the following new subsection:CommentsClose CommentsPermalink





‘(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.’.CommentsClose CommentsPermalink





(c) Lifetime Gift Exemption- Paragraph (1) of section 2505(a) of the Internal Revenue Code of 1986 is amended to read as follows:CommentsClose CommentsPermalink





‘(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 $5,000,000, reduced by’.CommentsClose CommentsPermalink





(d) Conforming Amendments-CommentsClose CommentsPermalink





(1) Section 2505(a) of such Code is amended by striking the last sentence.CommentsClose CommentsPermalink





(2) The heading for section 2505 of such Code is amended by striking ‘unified’.CommentsClose CommentsPermalink





(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:CommentsClose CommentsPermalink





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





(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.CommentsClose CommentsPermalink





(f) Transition Rule-CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink