Recently introduced bills are indicative of the fact that the estate, gift and generation skipping transfer taxes are still a topic of considerable political debate.

Recently, the Responsible Estate Tax Act was introduced in both the House and the Senate. This bill, if enacted into law would significantly increase and modify the estate, gift and generation skipping transfer (GST) tax system. Highlights of the proposed changes include the following:

• increasing the tax rates to include a top bracket of 65 percent (for estates of more than $500 million)
• reducing the exemption amount for estate and GST tax to $3.5 million, and reducing the gift tax exemption to $1 million
• introducing new rules regarding grantor retained annuity trusts that would significantly impair the efficacy of the technique
• limiting the gift tax annual exclusion in certain circumstances.

Earlier this year, two separate bills — the Simplified, Manageable, and Responsible Tax Act and the Death Tax Repeal Act of 2015 — were introduced in both the House and the Senate with the intention of repealing the estate, GST and, with respect to the former, gift taxes. In addition, there have been numerous other estate tax repeal bills introduced in the House this year.

Although it is unlikely that any of these proposed bills will become law (especially prior to the 2016 election), the various contrasting bills are indicative of the fact that the estate, gift and GST taxes are still a topic of considerable political debate, and the "permanent" law enacted in 2013 may, like most things in life, be only temporary.