H.R. 1259, The Death Tax Repeal Permanency Act amassed over 200 co-sponsors in the U.S. House of Representatives today.
The bill, sponsored by Rep. Kevin Brady (R-Tex.), and introduced almost one year ago, seeks to repeal estate and generation-skipping transfer taxes and make the maximum 35% gift tax rate and $5 million lifetime gift tax exemption permanent. Without legislative action, the estate tax reverts on January 1, 2013 to 2001 levels, which impose a $1 million exemption and 55% tax rate.
This does not bode well for life insurers who sell many products designed to ease the burden of estate taxes.