Us Congress 2023-2024 Regular Session

Us Congress House Bill HB338

Introduced
1/12/23  

Caption

Permanently Repeal the Estate Tax Act of 2023 This bill repeals the federal estate tax, effective for estates of decedents dying after December 31, 2022.

Impact

The repeal of the estate tax could significantly transform the current landscape of inheritance laws in the United States. By removing this tax, the bill addresses concerns from various stakeholders, including families who argue that the estate tax penalizes them for their financial success. Consequentially, this could lead to a shift in financial planning strategies, as individuals may no longer feel the pressure to structure their estates to minimize tax liabilities. However, it could also result in a loss of revenue for federal and state-funded programs that benefit from estate tax income, initiating debate about fiscal responsibility and economic equity.

Summary

House Bill 338, titled the 'Permanently Repeal the Estate Tax Act of 2023', seeks to amend the Internal Revenue Code by repealing the federal estate tax, effective for estates of individuals who die after December 31, 2022. This bill is introduced as a measure to alleviate tax burdens on heirs and maintain the stepped-up basis for property transferred at death. The intent is to simplify the tax structure surrounding inheritance and to enhance the incentive for asset accumulation among families, thereby encouraging wealth retention within households over generations.

Contention

Opposition to HB 338 may arise from various sectors, particularly from those who believe that the estate tax plays a crucial role in redistributing wealth. Critics argue that eliminating this tax would disproportionately benefit the wealthy, thereby exacerbating economic inequality. Furthermore, there are concerns that the loss of tax revenue could impact social programs that assist lower-income families. Proponents of the bill, however, contend that repealing the estate tax will ultimately enable greater economic growth and incentivize investment within local communities, as families retain more wealth and can pass it along without incurring heavy tax burdens.

Companion Bills

No companion bills found.

Previously Filed As

US HB160

SALT Fairness Act of 2023 This bill repeals the temporary restrictions in taxable years 2018 through 2025 on the deductibility of state and local taxes.

US HB415

End the Threat of Default Act This bill repeals the statutory debt limit, which limits the amount of money that the federal government may borrow.

US HB108

Small Business Prosperity Act of 2023 This bill modifies the tax deduction for qualified business income to (1) make such deduction permanent, (2) limit to 21% the top tax rate on qualified business income, (3) repeal the limitation on the deduction based on amount of wages paid, and (4) revise the definition of qualified trade or business to mean any trade or business other than the trade of business of performing services as an employee. The bill provides that a change in the organizational structure of a corporation is not a taxable event if there is no change among the owners, their ownership interests, or the assets of the organization, The bill repeals the estate tax after 2022.

US HB936

Tanning Tax Repeal Act of 2023

US HB34

Assuring Medicare’s Promise Act of 2023 This bill increases net investment income tax revenues by applying such tax to the trade or business income of certain high income taxpayers and includes the increased tax revenues in the Federal Hospital Insurance Trust Fund.

US HB2681

Small Business Taxpayer Bill of Rights Act of 2023

US HB25

FairTax Act of 2023 This bill imposes a national sales tax on the use or consumption in the United States of taxable property or services in lieu of the current income taxes, payroll taxes, and estate and gift taxes. The rate of the sales tax will be 23% in 2025, with adjustments to the rate in subsequent years. There are exemptions from the tax for used and intangible property; for property or services purchased for business, export, or investment purposes; and for state government functions. Under the bill, family members who are lawful U.S. residents receive a monthly sales tax rebate (Family Consumption Allowance) based upon criteria related to family size and poverty guidelines. The states have the responsibility for administering, collecting, and remitting the sales tax to the Treasury. Tax revenues are to be allocated among (1) the general revenue, (2) the old-age and survivors insurance trust fund, (3) the disability insurance trust fund, (4) the hospital insurance trust fund, and (5) the federal supplementary medical insurance trust fund. No funding is authorized for the operations of the Internal Revenue Service after FY2027. Finally, the bill terminates the national sales tax if the Sixteenth Amendment to the Constitution (authorizing an income tax) is not repealed within seven years after the enactment of this bill.

US HB481

Protecting Homeowners from Disaster Act of 2025 This bill repeals the limit on the itemized tax deduction for unreimbursed personal casualty losses. Specifically, the bill repeals a provision that generally limits the deduction for tax years 2018-2025 to losses that are attributable to a federally declared disaster. The bill applies to losses sustained after 2024. 

US HB2953

FAIR Act of 2023 Forced Arbitration Injustice Repeal Act of 2023

US SB1108

Death Tax Repeal Act of 2023

Similar Bills

No similar bills found.