Estate Tax Rate Reduction Act
Sponsored By: Representative Arrington, Jodey C. [R-TX-19]
Introduced
Summary
Sets a uniform 20% tax rate on estates, gifts, and generation-skipping transfers. It would replace the graduated rate schedule with a single 20% rate and make conforming changes across the tax code.
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- Families and heirs: People receiving large inheritances or big gifts would face a single 20% tax on taxable amounts instead of graduated rates.
- Estate planners and trusts: The generation-skipping transfer tax would be computed as the 20% rate multiplied by the inclusion ratio, which changes how GST tax applies to trust and skip transfers.
- Timing: The 20% rate would apply to estates of decedents dying, generation-skipping transfers, and gifts made after Dec. 31, 2024.
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 1 benefits, 0 costs, 0 mixed.
Flat 20% tax on estates and gifts
If enacted, this bill would set a single 20% tax rate on estates, gifts, and generation-skipping transfers. For deaths and transfers after December 31, 2024, the tentative tax would be 20% of the taxable amount. It would define the GST rate as 20% times the inclusion ratio for that transfer. This would mostly affect large estates and donors who already owe these taxes, and could lower their tax bills.
Sponsors & CoSponsors
Sponsor
Arrington, Jodey C. [R-TX-19]
TX • R
Cosponsors
Bishop
GA • D
Sponsored 1/22/2025
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov