Congress Considering Repeal of the Estate Tax
April 1, 2015
The House Ways and Means Committee recently approved the Death Tax Repeal Act of 2015 (H.R. 1104), legislation to repeal the estate tax. The bill introduced by Rep. Kevin Brady (R-Texas) and Rep. Sanford Bishop (D-Ga.), would amend the Tax Code to repeal both the estate tax and the Generation-Skipping Transfer Tax. It would also make permanent the maximum 35% gift tax rate and provide a $5 million lifetime gift tax exemption.
Proponents of the bill argue the estate tax hurts small businesses who want to pass on their businesses to the next generation. Under current law, the estate tax takes a 40% cut from a taxable estate when a person passes away. While similar pieces of legislation have been introduced in previous years, this year’s bill will likely proceed to the House floor for a vote—the first in a decade—sometime in April. Sen. John Thune (R-S.D.) introduced the Senate companion to H.R. 1105 at the end of March. AFS supports the measure.