H.R. 1105 would amend the Internal Revenue Code to repeal the estate tax for estates of individuals dying on or after the date of enactment. The bill would also repeal the generation-skipping transfer tax for such transfers made on or after the date of enactment. In addition, H.R. 1105 would lower the top marginal gift tax rate from 40 percent to 35 percent.
The staff of the Joint Committee on Taxation (JCT) estimates that enacting H.R. 1105 would reduce revenues, thus increasing federal deficits, by about $269 billion over the 2015-2025 period.
The Statutory Pay-As-You-Go Act of 2010 establishes budget-reporting and enforcement procedures for legislation affecting direct spending and revenues. Enacting H.R. 1105 would result in revenue losses in each year beginning in 2016. The estimated increases in the deficit are shown in the following table.
JCT has determined that the bill contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act.