House Kills the Death Tax

On April 16, the House passed, by a vote of 240-179, the “Death Tax Repeal Act of 2015,” which would repeal the estate tax and the generation-skipping transfer tax.

The Obama Administration previously indicated that if the President were presented with H.R. 1105, which would add $269 billion to the deficit (over ten years).

The Will Doctor notes the wildly gyrating revenue losses attributable to the repeal of the Estate tax, thrown about from time to time by all the parties.  The amount of revenue to be raised, on the other hand, by the taxation of capital gains on gifts, or at death, will likely more than offset the revenue lost from estate tax repeal.  This presents the politicians with an opportunity to do a deal.

Posted in Status of Tax Legislation, WillPlan Blog.