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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 587 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
1st Session
S. 587
To amend the Internal Revenue Code of 1986 to repeal the estate and
generation-skipping transfer taxes, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
February 13, 2025
Mr. Thune (for himself, Mr. Grassley, Mr. Lankford, Mrs. Hyde-Smith,
Mr. Hagerty, Mr. Daines, Mr. Tuberville, Mr. Sheehy, Mr. Johnson, Mr.
Mullin, Mrs. Capito, Mr. Justice, Mr. Cornyn, Mr. Wicker, Mr. Scott of
South Carolina, Mrs. Blackburn, Mr. Tillis, Mr. Budd, Mr. Crapo, Mr.
Hoeven, Mr. Barrasso, Mr. Risch, Mr. Boozman, Ms. Ernst, Mr. Moran, Mr.
Marshall, Mr. Cramer, Mr. Ricketts, Mr. Scott of Florida, Mr. Kennedy,
Mr. Rounds, Ms. Lummis, Mrs. Fischer, Mr. Graham, Mr. McCormick, Mrs.
Britt, Mr. Young, Mr. Cotton, Mr. McConnell, Mr. Banks, Mr. Curtis, Mr.
Schmitt, Mr. Lee, Mr. Hawley, Mr. Cruz, and Mr. Moreno) introduced the
following bill; which was read twice and referred to the Committee on
Finance
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to repeal the estate and
generation-skipping transfer taxes, and for other purposes.
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 of 2025''.
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:
``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 of 2025.
``(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 of 2025--
``(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.''.
(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:
``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 of
2025.''.
(c) Conforming Amendments.--
(1) 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.''.
(2) 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.''.
(d) 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.
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:
``(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
the tentative tax to be computed is:. 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
over $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 over $500,000.''.
(b) Treatment of Certain Transfers in Trust.--Section 2511 of the
Internal Revenue Code of 1986 is amended by adding at the end the
following new subsection:
``(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.''.
(c) Lifetime Gift Exemption.--
(1) 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''.
(2) 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.''.
(d) Conforming Amendments.--
(1) Section 2505(a) of such Code is amended by striking the
last sentence.
(2) The heading for section 2505 of such Code is amended by
striking ``unified''.
(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:
``Sec. 2505. Credit against gift tax.''.
(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.
(f) 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
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.
(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.
<all>
Introduced in Senate
Read twice and referred to the Committee on Finance. (text: CR S977-978)
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