S.Amdt. 1657

SA 1657. Mr. THUNE (for himself, Mr. Grassley, Mr. Roberts, Mr.
Isakson, and Mr. Inhofe) submitted an amendment intended to be proposed
by him to the bill H.R. 1, to provide for reconciliation pursuant to
titles II and V of the concurrent resolution on the budget for fiscal
year 2018; which was ordered to lie on the table; as follows:

Strike section 11061 and insert the following:

SEC. 11061. REPEAL OF ESTATE AND GENERATION-SKIPPING TRANSFER
TAXES AND MODIFICATIONS OF GIFT TAX.

(a) Repeal of Estate and Generation-skipping Transfer
Taxes.--
(1) Estate tax repeal.--Subchapter C of chapter 11 of
subtitle B is amended by adding at the end the following new
section:

``SEC. 2210. TERMINATION.

``(a) In General.--Except as provided in subsection (b),
this chapter shall not apply to the estates of decedents
dying on or after the date of the enactment of the Tax Cuts
and Jobs Act.
``(b) Certain Distributions From Qualified Domestic
Trusts.--In applying section 2056A with respect to the
surviving spouse of a decedent dying before the date of the
enactment of the Tax Cuts and Jobs Act--
``(1) section 2056A(b)(1)(A) shall not apply to
distributions made after the 10-year period beginning on such
date, and
``(2) section 2056A(b)(1)(B) shall not apply on or after
such date.''.
(2) Generation-skipping transfer tax repeal.--Subchapter G
of chapter 13 of subtitle B is amended by adding at the end
the following new section:

``SEC. 2664. TERMINATION.

``This chapter shall not apply to generation-skipping
transfers on or after the date of the enactment of the Tax
Cuts and Jobs Act.''.
(3) Conforming amendments.--
(A) The table of sections for subchapter C of chapter 11 is
amended by adding at the end the following new item:

``Sec. 2210. Termination.''.

(B) The table of sections for subchapter G of chapter 13 is
amended by adding at the end the following new item:

``Sec. 2664. Termination.''.

(4) Effective date.--The amendments made by this subsection
shall apply to the estates of decedents dying, and
generation-skipping transfers, after December 31, 2017.
(b) Modifications of Gift Tax.--
(1) Computation of gift tax.--Subsection (a) of section
2502 is amended to read as follows:
``(a) Computation of Tax.--
``(1) In general.--The tax imposed by section 2501 for each
calendar year shall be an amount equal to the excess of--
``(A) a tentative tax, computed under paragraph (2), on the
aggregate sum of the taxable gifts for such calendar year and
for each of the preceding calendar periods, over
``(B) a tentative tax, computed under paragraph (2), on the
aggregate sum of the taxable gifts for each of the preceding
calendar periods.
``(2) Rate schedule.--

...............................
``If the amount with respect to which    The tentative tax is:
the tentative tax to be computed is:.
Not over $10,000.......................  18% of such amount.
Over $10,000 but not over $20,000......  $1,800, plus 20% of the excess
over $10,000.
Over $20,000 but not over $40,000......  $3,800, plus 22% of the excess
over $20,000.
Over $40,000 but not over $60,000......  $8,200, plus 24% of the excess
over $40,000.
Over $60,000 but not over $80,000......  $13,000, plus 26% of the excess
over $60,000.
Over $80,000 but not over $100,000.....  $18,200, plus 28% of the excess
over $80,000.
Over $100,000 but not over $150,000....  $23,800, plus 30% of the excess
over $100,000.
Over $150,000 but not over $250,000....  $38,800, plus 32% of the excess
of $150,000.
Over $250,000 but not over $500,000....  $70,800, plus 34% of the excess
over $250,000.
Over $500,000..........................  $155,800, plus 35% of the
excess of $500,000.''.

(2) Treatment of certain transfers in trust.--Section 2511
is amended by adding at the end the following new subsection:
``(c) Treatment of Certain Transfers in Trust.--
Notwithstanding any other provision of this section and
except as provided in regulations, a transfer in trust shall
be treated as a taxable gift under section 2503, unless the
trust is treated as wholly owned by the donor or the donor's
spouse under subpart E of part I of subchapter J of chapter
1.''.
(3) Lifetime gift exemption.--
(A) In general.--Paragraph (1) of section 2505(a) is
amended to read as follows:
``(1) the amount of the tentative tax which would be
determined under the rate schedule set forth in section
2502(a)(2) if the amount with respect to which such tentative
tax is to be computed were $5,000,000, reduced by''.
(B) Inflation adjustment.--Section 2505 is amended by
adding at the end the following new subsection:
``(d) Inflation Adjustment.--
``(1) In general.--In the case of any calendar year after
2011, the dollar amount in subsection (a)(1) shall be
increased by an amount equal to--
``(A) such dollar amount, multiplied by
``(B) the cost-of-living adjustment determined under
section 1(f)(3) for such calendar year by substituting
`calendar year 2010' for `calendar year 1992' in subparagraph
(A)(ii) thereof.
``(2) Rounding.--If any amount as adjusted under paragraph
(1) is not a multiple of $10,000, such amount shall be
rounded to the nearest multiple of $10,000.''.
(4) Conforming amendments.--
(A) Section 2505(a) is amended by striking the last
sentence.
(B) The heading for section 2505 is amended by striking
``unified''.
(C) The item in the table of sections for subchapter A of
chapter 12 relating to section 2505 is amended to read as
follows:

``Sec. 2505. Credit against gift tax.''.

(5) Effective date.--The amendments made by this subsection
shall apply to gifts made after December 31, 2017.
______