[Congressional Record Volume 165, Number 15 (Thursday, January 24, 2019)]
[Senate]
[Pages S588-S589]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
By Mr. THUNE (for himself, Mr. Alexander, Mr. Barrasso, Mrs.
Blackburn, Mr. Blunt, Mr. Boozman, Mr. Cornyn, Mr. Cramer, Mr.
Crapo, Mr. Cruz, Mr. Daines, Ms. Ernst, Mrs. Fischer, Mr.
Gardner, Mr. Grassley, Mr. Hoeven, Mrs. Hyde-Smith, Mr. Inhofe,
Mr. Isakson, Mr. Kennedy, Mr. McConnell, Mr. Moran, Mr. Risch,
Mr. Roberts, Mr. Rounds, Mr. Young, Mr. Cotton, Mr. Rubio, and
Mr. Perdue):
S. 215. A bill to amend the Internal Revenue Code of 1986 to repeal
the estate and generation-skipping transfer taxes, and for other
purposes; to the Committee on Finance.
Mr. THUNE. Mr. President, I ask unanimous consent that the text of
the bill be printed in the Record.
There being no objection, the text of the bill was ordered to be
printed in the Record, as follows:
S. 215
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
2019''.
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 2019.
``(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 2019--
``(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 2019.''.
(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 tax is:
the tentative tax to be computed 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.
[[Page S589]]
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
of $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 of $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.
______