House Ways and Means Committee Votes to Phase Out the Death Tax by 2024; Senate Finance Committee Proposes to Double the Exclusion
Yesterday, the House Ways and Means Committee voted along party lines to pass their tax reform bill which repeals the Death Tax in 2024 (not 2023 as originally proposed).
The bill also provides that for tax years beginning after 2017 and before 2024, the personal exemption amount would be doubled from the current $5 million to $10 million, indexed for inflation.
Subsequently, the Senate Finance released its proposal that, like the House Ways and Means-approved bill, would double the current exemption; however, the Senate bill would retain the Death Tax. While the initial Senate proposal is disappointing, is not necessarily surprising given budget limitations.
Looking ahead, the House is expected to vote (and likely pass) its bill next week, while the Senate Finance Committee plans to begin marking-up its proposal on Monday. After lawmakers return from Thanksgiving, the Senate will take up and vote on its proposal with hopes of reconciling the differences with the House bill and sending an agreed upon package to the President for signature before the end of 2017. As that process moves forward, it is critical that we reach out to Member of Congress and make sure they understand that the estate tax must be repealed so that death is no longer a taxable event!
Link to DESCRIPTION OF THE CHAIRMAN’S MARK OF THE “TAX CUTS AND JOBS ACT”
Please let us know if you have any questions.