On March 30, H.R. 1259, "The Bipartisan Death Tax Repeal Permanency Act," was introduced in the U.S. House of Representatives by Rep. Kevin Brady (R - TX). At a press conference, Brady stated, "The death tax is still the number one reason family farms and businesses in America aren't passed down to the next generation. It's the wrong tax at the wrong time and it hurts the wrong people."
The bill is called "bipartisan" because it currently has six co-sponsors, two Democrats and four Republicans: Rep. Dan Boren (D - OK), Rep. Lynn Jenkins (R - KS), Rep. Walter Jones (R - NC), Rep. Kristi Noem (R - SD), Rep. Devin Nunes (R -CA), and Rep. Mike Ross (D - AR).
The bill, which would become effective on the date of enactment, provides for the following:
- Repeal of the federal estate tax.
- Repeal of the federal generation-skipping transfer tax.
- Extension of the current $5 million lifetime gift tax exemption and 35% gift tax rate.
According to Rep. Brady, while he believes that there will be strong support for H.R. 1259 in the House, he sees a fight in the Senate. Nonetheless, Brady wants to push for a debate over the future of the federal estate tax sooner rather than later: "I can tell from having almost let the clock run out last Christmas time that there were real problems created by the lateness of Congress to act on this issue. [You think?!] So we are going to encourage both the House and Senate to move as quickly as possible on this to create that certainty for farmers and businesses."
As usual I won't be holding my breath, although I still think that the federal estate tax will be repealed for 2013 and beyond even though the results of my latest estate tax straw poll show that the majority of voters disagree with me: New Estate Tax Straw Poll - Cast Your Vote! - What Do You Think Congress Will Do With Estate Taxes for 2013 and Beyond?
- Text of H.R. 1259 - The Bipartisan Death Tax Permanency Repeal Act
- Missouri Ruralist- Bill Would Permanently Repeal Estate Tax
- Hani Sarji, Estate of Confusion blog - Bi-partisan Effort To Repeal The Estate Tax
- Overview of Current Federal Estate Tax Laws
- What is the Future of the Federal Estate Tax?
- What Are the Modified Carryover Basis Rules?
- What is the Lifetime Gift Tax Exemption?