HR 5315 IH

106th CONGRESS

2d Session

H. R. 5315

To amend the Internal Revenue Code of 1986 to reduce estate and gift tax rates, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

September 27, 2000

Mr. TANNER (for himself, Mr. STENHOLM, Mr. BOYD, Ms. HOOLEY of Oregon, Mr. SPRATT, Mr. DOOLEY of California, Ms. ESHOO, Mr. ABERCROMBIE, Mrs. MCCARTHY of New York, Ms. LOFGREN, Mr. CROWLEY, Mr. LUCAS of Kentucky, Ms. DANNER, Mr. HALL of Texas, Mr. SISISKY, Mr. TURNER, Mrs. TAUSCHER, Mr. SMITH of Washington, Mr. BERRY, Mr. SHOWS, Mr. THOMPSON of California, Mr. HOLDEN, Mr. HILL of Indiana, Mr. JOHN, Mr. CRAMER, and Mr. DOYLE) introduced the following bill; which was referred to the Committee on Ways and Means


A BILL

To amend the Internal Revenue Code of 1986 to reduce estate and gift tax rates, and for other purposes.

SECTION 1. SHORT TITLE.

SEC. 2. 20 PERCENT REDUCTION OF ESTATE TAX RATES.

`If the amount with respect to which the tentative tax is to be computed is:

The tentative tax is:

Not over $10,000


14.4% of such amount.

Over $10,000 but not over $20,000


$1,440, plus 16% of the excess of such amount over $10,000

Over $20,000 but not over $40,000


$3,040, plus 17.6% of the excess of such amount over $20,000

Over $40,000 but not over $60,000


$6,560, plus 19.2% of the excess of such amount over $40,000

Over $60,000 but not over $80,000


$10,400, plus 20.8% of the excess of such amount over $60,000

Over $80,000 but not over $100,000


$14,560, plus 22.4% of the excess of such amount over $80,000

Over $100,000 but not over $150,000


$19,040, plus 24% of the excess of such amount over $100,000

Over $150,000 but not over $250,000


$31,040, plus 25.6% of the excess of such amount over $150,000

Over $250,000 but not over $500,000


$56,640, plus 27.2% of the excess of such amount over $250,000

Over $500,000 but not over $750,000


$124,640, plus 29.6% of the excess of such amount over $500,000

Over $750,000 but not over $1,000,000


$198,640, plus 31.2% of the excess of such amount over $750,000

Over $1,000,000 but not over $1,250,000


$276,640, plus 32.8% of the excess of such amount over $1,000,000

Over $1,250,000 but not over $1,500,000


$358,640, plus 34.4% of the excess of such amount over $1,250,000

Over $1,500,000 but not over $2,000,000


$444,640, plus 36% of the excess of such amount over $1,500,000

Over $2,000,000 but not over $2,500,000


$624,640, plus 39.2% of the excess of such amount over $2,000,000

Over $2,500,000 but not over $3,000,000


$820,640, plus 42.4% of the excess of such amount over $2,500,000

Over $3,000,000


$1,032,640, plus 44% of the excess of such amount over $3,000,000.

Over $2,500,000


$820,640, plus 39.6% of the excess of such amount over $2,500,000.'

SEC. 3. INCREASE IN EXEMPTION EQUIVALENT OF UNIFIED CREDIT; INFLATION ADJUSTMENT OF CREDIT.

`In the case of estates of decedents

--The applicable

dying, and gifts made, during:

--exclusion amount is:

2001 and 2002

--$1,300,000

2003 and 2004

--$1,500,000

2005 and 2006

--$1,700,000

2007 and 2008

--$1,900,000

2009 or thereafter

--$2,000,000.'

stituting `calendar year 2009' for `calendar year 1992' in subparagraph (B) thereof.

SEC. 4. REPEAL OF ESTATE TAX BENEFIT FOR FAMILY-OWNED BUSINESS INTERESTS.

SEC. 5. CREDIT FOR STATE DEATH TAXES REPLACED WITH DEDUCTION FOR SUCH TAXES.

`SEC. 2058. STATE DEATH TAXES.

country and included in the gross estate of a citizen or resident of the United States, upon a transfer by the decedent for public, charitable, or religious uses described in section 2055. The determination under this paragraph of the country within which property is situated shall be made in accordance with the rules applicable under subchapter B (sec. 2101 and following) in determining whether property is situated within or without the United States. Any election under this paragraph shall be exercised in accordance with regulations prescribed by the Secretary.

`See section 2014(f) for the effect of a deduction taken under this paragraph on the credit for foreign death taxes.'

`Sec. 2058. State death taxes.'

SEC. 6. INCREASE IN NUMBER OF ALLOWABLE PARTNERS AND SHAREHOLDERS IN CLOSELY HELD BUSINESSES FOR PURPOSES OF EXTENSION OF TIME FOR PAYING ESTATE TAX.

END