Estate and gift tax calculations would use a 20% rate

Estate and gift tax calculations would use a 20% rate. The provisions cover estate taxes, gift taxes, and taxes on transfers that skip a generation. The 20% rate applies to the tentative tax calculation, not necessarily to the estate’s or gift’s full value. For transfers that skip a generation, the applicable rate would multiply the estate tax rate by a transfer-specific factor called the inclusion ratio. The tax amendments would apply to estates of people dying, gifts made, and generation-skipping transfers occurring after December 31, 2024.

Federal budget scorecards would leave out the tax provisions’ budget effects. The exclusion would cover both statutory pay-as-you-go scorecards and the Senate scorecard named in the proposal.