H.R. 601, the Estate Tax Rate Reduction Act, would lower the federal estate tax rate from its current top rate of 40 percent to a flat rate of 20 percent on estates, gifts, and generation-skipping transfers. The bill affects wealthy individuals and families by reducing the taxes owed on assets passed to heirs upon death or given as large gifts during life. The changes would apply to estates of people who die after December 31, 2024, as well as to gifts and generation-skipping transfers made after that date. The legislation includes provisions to align other sections of the tax code with this new flat rate structure. The bill notably exempts itself from standard budget accounting rules known as "pay-as-you-go," meaning Congress would not formally count the lost revenue from this tax cut against other spending increases or tax cuts.