Death Tax Repeal Permanency Act of 2012 - Amends the Internal Revenue Code to: (1) repeal the estate and generation-skipping transfer taxes, and (2) make permanent the maximum 35% gift tax rate and a $5 million lifetime gift tax exemption.
[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 2242 Introduced in Senate (IS)]
112th CONGRESS
2d Session
S. 2242
To amend the Internal Revenue Code of 1986 to repeal the estate and
generation-skipping transfer taxes, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 28, 2012
Mr. Thune (for himself, Mr. Rubio, Mr. Boozman, Mr. Lugar, Mr. Vitter,
Mr. Isakson, Mr. Kyl, Mr. Heller, Mr. Moran, Mr. Roberts, Mr. Inhofe,
Mr. Enzi, Mr. Grassley, Mr. Lee, Mr. Paul, Mr. Blunt, Mr. McCain, Mr.
Barrasso, Mr. Cornyn, Mr. McConnell, Mr. Crapo, Mr. Hoeven, Mr. Kirk,
Mr. Wicker, Mrs. Hutchison, Mr. Cochran, Mr. Burr, Mr. Sessions, Mr.
Toomey, Ms. Ayotte, Mr. Risch, Mr. Coburn, Mr. Johanns, Mr. DeMint, and
Mr. Coats) introduced the following bill; which was read twice and
referred to the Committee on Finance
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to repeal the estate and
generation-skipping transfer taxes, and for other purposes.
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 Permanency Act of
2012''.
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 Permanency Act of
2012.
``(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
Permanency Act of 2012--
``(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 Permanency
Act of 2012.''.
(c) Conforming Amendments.--
(1) The table of sections for subchapter C of chapter 11 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 is
amended by adding at the end the following new item:
``Sec. 2664. Termination.''.
(d) Restoration of Pre-EGTRRA Provisions Not Applicable.--
(1) In general.--Section 301 of the Tax Relief,
Unemployment Insurance Reauthorization, and Job Creation Act of
2010 shall not apply to estates of decedents dying, and
transfers made, on or after the date of the enactment of this
Act.
(2) Exception for stepped-up basis.--Paragraph (1) shall
not apply to the provisions of law amended by subtitle E of
title V of the Economic Growth and Tax Relief Reconciliation
Act of 2001 (relating to carryover basis at death; other
changes taking effect with repeal).
(e) Sunset Not Applicable.--
(1) Section 901 of the Economic Growth and Tax Relief
Reconciliation Act of 2001 shall not apply to title V of such
Act in the case of estates of decedents dying, and transfers
made, on or after the date of the enactment of this Act.
(2) Section 304 of the Tax Relief, Unemployment Insurance
Reauthorization, and Job Creation Act of 2010 is hereby
repealed.
(f) 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
the tentative tax to be computed is:. tax 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.
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
(relating to transfers in general) 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.--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 $5,000,000, reduced by''.
(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.
<all>
Introduced in Senate
Read twice and referred to the Committee on Finance.
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