HR 3074 IH

To repeal the Federal estate and gift taxes and the alternative minimum tax on individuals and corporations.

October 14, 1999

Mr. COOK introduced the following bill; which was referred to the Committee on Ways and Means

To repeal the Federal estate and gift taxes and the alternative minimum tax on individuals and corporations.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. REPEAL OF ESTATE AND GIFT TAXES.

(a) IN GENERAL- Subtitle B (relating to estate, gift, and generation-skipping taxes) of the Internal Revenue Code of 1986 is hereby repealed.

(b) EFFECTIVE DATE- The repeal made by subsection (a) shall apply to estates of decedents dying, gifts made, and generation-skipping transfers made after December 31, 2004.

SEC. 2. REPEAL OF ALTERNATIVE MINIMUM TAX.

(a) IN GENERAL- Subsection (a) of section 55 is amended by adding at the end the following new flush sentence:

`For purposes of this title, the tentative minimum tax for any taxable year beginning after December 31, 2004, shall be zero.'

(b) REDUCTION OF TAX PRIOR TO REPEAL- Section 55 of such Code is amended by adding at the end the following new subsection:

`(f) PHASEOUT OF TAX-

`(1) IN GENERAL- The tax imposed by this section for any taxable year beginning after December 31, 1999, and before January 1, 2005, shall be the applicable percentage of the tax which would be imposed but for this subsection.

`(2) APPLICABLE PERCENTAGE- For purposes of paragraph (1), the applicable percentage shall be determined in accordance with the following table:

`For taxable years beginning

--The applicable

in calendar year--

--percentage is--

2000

--80

2001

--70

2002

--60

2003 or 2004

--50.'.

(d) EFFECTIVE DATE- The amendments made by this section shall apply to taxable years beginning after December 31, 1999.

END