H. R IN THE HOUSE OF REPRESENTATIVES A BILL

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1 I 1TH CONGRESS 1ST SESSION H. R. 0 To amend the Internal Revenue Code of to repeal the 1-year termination of the estate tax, to increase the estate and gift tax unified credit, and to coordinate a reduction in the maximum rate of tax with a phaseout of the deduction for State death taxes. IN THE HOUSE OF REPRESENTATIVES OCTOBER, 00 Ms. BERKLEY (for herself, Mr. BRADY of Texas, Mr. DAVIS of Alabama, and Mr. NUNES) introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of to repeal the 1-year termination of the estate tax, to increase the estate and gift tax unified credit, and to coordinate a reduction in the maximum rate of tax with a phaseout of the deduction for State death taxes. 1 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the Estate Tax Relief Act wwoods on DSK1DXXB1PROD with BILLS of 00. VerDate Nov 00 0: Oct, 00 Jkt 000 PO Frm Fmt Sfmt 01 E:\BILLS\H0.IH H0

2 SEC.. RESTORATION OF ESTATE TAX; REPEAL OF CARRY- OVER BASIS. (a) IN GENERAL. The following provisions of the Economic Growth and Tax Relief Reconciliation Act of 001, and the amendments made by such provisions, are hereby repealed: (1) Subtitles A and E of title V. () Subsection (d), and so much of subsection (f)() as relates to subsection (d), of section. () Paragraph () of subsection (b), and paragraph () of subsection (e), of section 1. The Internal Revenue Code of shall be applied as if such provisions and amendments had never been enacted. (b) SUNSET NOT TO APPLY. (1) Subsection (a) of section 01 of the Economic Growth and Tax Relief Reconciliation Act of 001 is amended by striking this Act and all that follows and inserting this Act (other than title V) shall not apply to taxable, plan, or limitation years beginning after December 1, 0.. () Subsection (b) of such section 01 is amended by striking, estates, gifts, and transfers. wwoods on DSK1DXXB1PROD with BILLS HR 0 IH VerDate Nov 00 0: Oct, 00 Jkt 000 PO Frm 0000 Fmt Sfmt 01 E:\BILLS\H0.IH H0

3 SEC.. INCREASE IN UNIFIED CREDIT AGAINST THE ES- TATE TAX. (a) IN GENERAL. The table in subsection (c) of section 0 of the Internal Revenue Code of (relating to applicable credit amount) is amended to read as follows: wwoods on DSK1DXXB1PROD with BILLS In the case of estates of The applicable decedents dying during: exclusion amount is: $,00, $,0, $,00, $,0, $,0, $,0, $,00, $,0, $,00, $,0, or thereafter... $,000,000.. (b) INFLATION ADJUSTMENT. Subsection (c) of sec- tion 0 of such Code, as amended by subsection (a), is amended HR 0 IH (1) by striking For purposes of this section, and inserting the following: (1) IN GENERAL. For purposes of this sec- tion,, and () by adding at the end the following new paragraph: () INFLATION ADJUSTMENT. In the case of any decedent dying in a calendar year after 01, the $,000,000 amount in paragraph (1) shall be in- creased by an amount equal to (A) such dollar amount, multiplied by VerDate Nov 00 0: Oct, 00 Jkt 000 PO Frm 0000 Fmt Sfmt 01 E:\BILLS\H0.IH H0

4 (B) the cost-of-living adjustment determined under section 1(f)() for such calendar year, determined by substituting 01 for 1 in subparagraph (B) thereof. If any increase determined under the preceding sentence is not a multiple of $,000, such increase shall be rounded to the nearest multiple of $,000.. (c) EFFECTIVE DATE. The amendments made by this section shall apply to estates of decedents dying, and gifts made, after December 1, 00. SEC.. COORDINATED REDUCTION IN MAXIMUM RATE OF TAX WITH TERMINATION OF DEDUCTION FOR STATE DEATH TAXES. (a) PHASEIN OF REDUCTION IN MAXIMUM RATE. (1) IN GENERAL. The table in subparagraph (B) of section 001(c)() of the Internal Revenue Code of (relating to maximum rate) is amended to read as follows: wwoods on DSK1DXXB1PROD with BILLS In calendar year: The maximum rate is: percent 0... percent 0... percent percent percent percent percent 0... percent percent percent 01 or thereafter... percent.. HR 0 IH VerDate Nov 00 0: Oct, 00 Jkt 000 PO Frm 0000 Fmt Sfmt E:\BILLS\H0.IH H0

5 () CONFORMING AND TECHNICAL AMEND- MENTS. (A) Section 001(c)()(A) of such Code is amended by striking after 00 and before 0 and inserting after 00. (B) Section 001(c)()(A)(ii) of such Code is amended by striking subparagraph (A) and inserting clause (i). (b) PHASEOUT OF DEDUCTION FOR STATE DEATH TAXES. Section 0 of the Internal Revenue Code of (relating to deduction for State death taxes) is amended by adding at the end the following: (c) PHASEOUT. (1) IN GENERAL. In the case of estates of decedents dying in a calendar year beginning after December 1, 00, the deduction under subsection (a) shall be equal to the applicable percentage of the amount which would (but for this subsection) be the amount of such deduction. () APPLICABLE PERCENTAGE. For purposes of paragraph (1), the applicable percentage shall be determined in accordance with the following table: wwoods on DSK1DXXB1PROD with BILLS In the case of taxes paid in calendar year: The applicable percentage is: percent percent percent percent percent HR 0 IH VerDate Nov 00 0: Oct, 00 Jkt 000 PO Frm 0000 Fmt Sfmt E:\BILLS\H0.IH H0

6 In the case of taxes paid in calendar year: The applicable percentage is: percent percent percent percent percent 01 or thereafter... 0 percent.. 1 (c) EFFECTIVE DATE. The amendments made by this section shall apply to estates of decedents dying, and gifts made, after December 1, 00. Æ wwoods on DSK1DXXB1PROD with BILLS HR 0 IH VerDate Nov 00 0: Oct, 00 Jkt 000 PO Frm 0000 Fmt Sfmt 01 E:\BILLS\H0.IH H0

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