This bill would permanently eliminate the federal estate tax and generation-skipping transfer tax, which currently apply to large inheritances passed to heirs and skipped generations. The legislation would take effect immediately upon enactment and apply to all deaths and transfers occurring after the bill becomes law. While repealing these taxes, the bill maintains a gift tax but reduces the lifetime exemption to $10 million (adjusted annually for inflation) and reverts to a 1970s-era tax rate schedule with rates ranging from 18 percent to 35 percent on large gifts. Currently, the estate tax exemption is much higher but is set to expire and reset to lower levels in 2026 under existing law. The bill is sponsored by over 130 House Republicans and would significantly reduce federal revenue by eliminating taxes that primarily affect the wealthiest Americans' inheritances.
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