House bill would cut estate tax rate in half, to 20 percent flat
In committeeH.R. 601Latest action
Sponsor: Jodey C. Arrington · Representative · TX
AIDecoded by AI · checked against the recordRead the official text
Official title: Estate Tax Rate Reduction Act
119th Congress
Topics: Jobs & the economy
Introduced:
Read the official bill on Congress.govIn plain words
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HR 601 would cut the federal estate, gift, and generation-skipping transfer tax rate from 40% to a flat 20% for transfers after Dec. 31, 2024.
60-second read · 5 questions answered below
What does this do?
HR 601 would lower the federal estate tax rate from its current top rate of 40 percent to a flat 20 percent. The same reduced rate would apply to gift taxes and generation-skipping transfer taxes. These changes would apply to deaths and transfers that occurred after December 31, 2024.
Who does it affect?
The estate tax currently applies only to estates worth more than about $13.6 million per individual, meaning most Americans are not affected. The people who would directly benefit are heirs of very large estates, whose tax bills would be cut roughly in half.
Why does it matter?
Independent budget analysts have estimated that reducing the estate tax rate this way would reduce federal tax revenue by a significant amount over time. How that might affect federal programs or the would depend on other budget decisions made by Congress.
What does it cost, and who pays?
- Revenue loss not offset under bill
- Analysts project significant revenue drop
- Normal budget offset rules bypassed
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Where does it stand?
- IntroducedJan 22, 2025
- House committeeYou are here · Jan 22, 2025
- House vote
- Senate
- The president's desk
Right now: a House committee is reviewing it. If the Senate changes it, it goes back to the House before reaching the president.
Latest action: — Referred to the Committee on Ways and Means, and in addition to the Committee on the Budget, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.