Cramer - House Passes Death Tax Repeal Act of 2015
WASHINGTON, D.C – Today Congressman Kevin Cramer joined a majority of his colleagues in the U.S. House of Representatives to pass H.R. 1105, the Death Tax Repeal Act of 2015. The estate tax, commonly referred to as the death tax, applies to the transfer of an estate at death to a descendant who is a citizen or resident of the United States.
“North Dakotans know all too well the harmful impact of the death tax on small businesses and family owned farms and ranches. While many of them are abundant in assets, they lack the cash liquidity to pay the high estate taxes after a loved one passes away. Many times families are forced to sell parts or even all of the farm or ranch that has been in the family for generations just to pay the tax bill. That is wrong and why I voted to repeal this onerous tax,” said Cramer.
Congressman Cramer was a co-sponsor of H.R. 1105, the Death Tax Repeal Act of 2015.
Summary of H.R. 1105, the Death Tax Repeal Act of 2015
H.R. 1105 amends the Internal Revenue Code of 1986 to repeal the estate and generation transfer skipping tax and reduce the highest gift tax rate from 40 percent to 35 percent, effective for decedents dying and gifts made on or after the date of enactment.
H.R. 1105 also provides for a transition rule for assets placed in a qualified domestic trust by a decedent who died before the date of enactment. The rule provides that an estate tax will not be imposed on: (1) distributions before the death of a surviving spouse from the trust more than ten years after the date or enactment; or (2) assets remaining in the qualified domestic trust upon the death of the surviving spouse.