Bill 119 HR 1301, also known as the Estate Tax and Generation-Skipping Transfer Tax Repeal Act, aims to make changes to the Internal Revenue Code of 1986 by repealing the estate and generation-skipping transfer taxes.
The estate tax, also known as the "death tax," is a tax imposed on the transfer of the estate of a deceased person. This tax is currently levied on estates valued at over a certain threshold, which is set at $11.7 million for individuals and $23.4 million for couples in 2021. The generation-skipping transfer tax is a tax on transfers of property that skip a generation, such as gifts or bequests to grandchildren.
If passed, this bill would eliminate both of these taxes, effectively reducing the tax burden on wealthy individuals and families who would otherwise be subject to these taxes upon their death or when transferring assets to future generations. Proponents of the bill argue that these taxes are unfair and discourage entrepreneurship and wealth accumulation, while opponents argue that repealing these taxes would primarily benefit the wealthiest Americans and exacerbate income inequality.
It is important to note that this bill is currently in the early stages of the legislative process and may undergo changes before potentially becoming law. It is also worth mentioning that the repeal of these taxes could have significant implications for federal revenue and the distribution of wealth in the United States.