119-hr601

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 601 Introduced in House

    (IH) ]

<DOC>

119th CONGRESS
 1st Session
 H. R. 601

To amend the Internal Revenue Code of 1986 to reduce the rate of tax on 
 estates, gifts, and generation-skipping transfers.

_______________________________________________________________________

 IN THE HOUSE OF REPRESENTATIVES

 January 22, 2025

 Mr. Arrington (for himself and Mr. Bishop) introduced the following 
 bill; which was referred to the Committee on Ways and Means, and in 
 addition to the Committee on the Budget, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
 of such provisions as fall within the jurisdiction of the committee 
 concerned

_______________________________________________________________________

 A BILL

To amend the Internal Revenue Code of 1986 to reduce the rate of tax on 
 estates, gifts, and generation-skipping transfers.

 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 ``Estate Tax Rate Reduction Act''.

SEC. 2. REDUCTION OF RATE OF TAX ON ESTATES, GIFTS, AND GENERATION-
 SKIPPING TRANSFERS.

    (a) In General.--

Section 2001 of the Internal Revenue Code of 1986 
is amended--

    (1) by striking subsection
            (c) and inserting the following:
 ``
            (c) Rate of Tax.--For purposes of determining the tentative tax, 
the rate of tax shall be 20 percent of the amount with respect to which 
the tentative tax is computed.''; and

    (2) in subsection

    (g)

    (1) , by striking ``rates of tax under 
 subsection
            (c) '' and inserting ``rate of tax under subsection
            (c) ''.

    (b) Conforming Amendments.--

    (1) Section 2056A

    (b)

    (2) of the Internal Revenue Code of 
 1986 is amended--
        (A) in subparagraph
        (B)
            (i) , by striking 
 ``highest''; and
        (B) in subparagraph
            (C) , by striking ``highest''.

    (2) Section 2107

    (a) of such Code is amended by striking 
 ``the table contained in'' and inserting ``the rate of tax 
 under''.

    (3) Section 2201

    (a) of such Code is amended by striking 
 ``the rate schedule set forth in 

section 2001
            (c) '' and 
 inserting ``the rate of tax under 

section 2001
            (c) ''.

    (4) Section 2641 of such Code is amended to read as 
 follows:

``

SEC. 2641. APPLICABLE RATE.

 ``For purposes of this chapter, the term `applicable rate' means, 
with respect to any generation-skipping transfer, the product of--
 ``

    (1) the rate imposed by 

section 2001 on the estates of 
 decedents dying at the time of the taxable distribution, 
 taxable termination, or direct skip, as the case may be, and
 ``

    (2) the inclusion ratio with respect to the transfer.''.

    (5) Section 2801

    (a)

    (1) of such Code is amended by striking 
 ``the highest rate of tax specified in the table contained in'' 
 and inserting ``the rate of tax under''.

    (6) Section 6601

    (j)

    (2)
        (A)
            (i) of such Code is amended by 
 striking ``the rate schedule set forth in''.
            (c) Effective Date.--The amendments made by this section shall 
apply to estates of decedents dying, generation-skipping transfers, and 
gifts made, after December 31, 2024.
            (d) Budgetary Effects.--

    (1) PAYGO scorecard.--The budgetary effects of this section 
 shall not be entered on either PAYGO scorecard maintained 
 pursuant to 

section 4
            (d) of the Statutory Pay-As-You-Go Act of 
 2010 (2 U.S.C. 933
            (d) ).

    (2) Senate paygo scorecard.--The budgetary effects of this 
 section shall not be entered on any PAYGO scorecard maintained 
 for purposes of 

section 4106 of H. Con. Res. 71 (115th 
 Congress), the concurrent resolution on the budget for fiscal 
 year 2018.
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