Bill > HR601

This bill proposes to reduce the estate tax rate from its current rate to a flat 20 percent for estates, gifts, and generation-skipping transfers. Specifically, the bill would amend the Internal Revenue Code to change how estate taxes are calculated, replacing the current graduated tax rate structure with a uniform 20 percent rate. The legislation applies to estates of individuals who die, generation-skipping transfers, and gifts made after December 31, 2024. Generation-skipping transfers are typically transfers of assets to grandchildren or later generations that might otherwise skip a generation for tax purposes. The bill makes several technical conforming amendments to other sections of the tax code to align with the new 20 percent rate. Importantly, the bill includes provisions that prevent its budgetary effects from being entered on PAYGO (Pay-As-You-Go) scorecards, which are typically used to track the fiscal impact of legislation. By reducing the estate tax rate, the bill aims to lower the tax burden on individuals transferring wealth to heirs, potentially making estate planning more favorable for high-net-worth individuals.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/601/all-info