Home > 106th Congressional Bills > H.R. 900 (ih) To amend the Truth in Lending Act to enhance consumer disclosures [Introduced in House] ...H.R. 900 (ih) To amend the Truth in Lending Act to enhance consumer disclosures [Introduced in House] ...
Union Calendar No. 26
107th CONGRESS
1st Session
H. R. 8
[Report No. 107-37]
To amend the Internal Revenue Code of 1986 to phase out the estate and
gift taxes over a 10-year period, and for other purposes.
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IN THE HOUSE OF REPRESENTATIVES
March 14, 2001
Ms. Dunn (for herself, Mr. Tanner, Mr. Cox, Mr. Abercrombie, Mr. Brown
of South Carolina, Mr. Culberson, Mr. Everett, Mr. Goode, Mr. Cooksey,
Mr. Bachus, Mr. Pence, Mr. LaHood, Mr. Shadegg, Mr. Duncan, Mr.
Whitfield, Mr. Saxton, Mr. Bonilla, Mrs. Roukema, Mrs. Biggert, Mr.
Ferguson, Mr. Gilchrest, Mr. Radanovich, Mr. Shaw, Mr. Maloney of
Connecticut, Mr. Sam Johnson of Texas, Mr. Tancredo, Mr. Boucher, Mr.
Traficant, Mr. Keller, Mr. Burton of Indiana, Mr. Shows, Mr. Gary
Miller of California, Mr. Rogers of Michigan, Mr. Cunningham, Mr.
Royce, Mr. Greenwood, Mr. Smith of Texas, Mr. Foley, Mr. Hayworth, Mr.
Weller, Mr. Kirk, Mr. Young of Alaska, Mr. Baird, Mr. Wamp, Mr. Dooley
of California, Mr. Ehlers, Mr. Cantor, Mr. Pombo, Mr. Simmons, Mr.
Camp, Mr. McIntyre, Mr. Hayes, Mr. Nethercutt, Ms. Hart, Mr. Barton of
Texas, Mrs. Wilson, Mr. Hall of Texas, Mr. Hyde, Mr. Wolf, Mr. Sununu,
Mr. Grucci, Mr. Callahan, Mr. Ryan of Wisconsin, Mrs. Kelly, Mr.
Largent, Mr. Deal of Georgia, Mr. Cannon, Mr. Aderholt, Mr. Crane, Ms.
Granger, Mr. Blunt, Mr. Green of Wisconsin, Mr. Herger, Mr. English,
Mr. LoBiondo, Mr. Jenkins, Mr. Pitts, Mr. Lewis of California, Mr.
Oxley, Mr. Riley, Mr. Chambliss, Mr. Watts of Oklahoma, Mrs. Northup,
Mr. Ose, Mr. Smith of New Jersey, Mr. Lewis of Kentucky, Mr. Lucas of
Oklahoma, Mr. Simpson, Mr. Peterson of Pennsylvania, Mr. McCrery, Mrs.
Bono, Mr. Calvert, Mr. Ney, Mr. Doolittle, Mr. Hunter, Mr. Skeen, Mr.
Hoekstra, Mr. LaTourette, Mr. Shimkus, Mr. Fletcher, Mrs. Capito, Mr.
Ehrlich, Mr. Bishop, Mr. Rohrabacher, Mr. Boehlert, Mr. Ryun of Kansas,
Mr. Cramer, Mrs. Emerson, Mr. Schaffer, Mr. Sessions, Mr. Isakson, Ms.
Ros-Lehtinen, Mr. Burr of North Carolina, Mr. Barr of Georgia, Mr.
Hastings of Washington, Mr. Miller of Florida, Mr. Horn, Mr. Ramstad,
Mr. McHugh, Mr. Walsh, Mr. Crenshaw, Mr. Norwood, Mr. Coble, Mr.
Nussle, Mr. Platts, Mr. Jones of North Carolina, Mr. Gekas, Mr. Rogers
of Kentucky, Mr. Bass, Mr. Terry, Mr. Schrock, Mr. Goodlatte, Mr.
Toomey, Mr. Wicker, Mr. Portman, Mr. Tauzin, Mr. Hansen, Mr. Armey, Mr.
Hilleary, Mr. McInnis, Mr. Combest, Mr. DeLay, Mrs. Cubin, Mr. Linder,
Mr. Mica, Mrs. McCarthy of New York, Mr. Frelinghuysen, Mr. Berry, Mr.
John, Mr. Condit, Mr. Sandlin, Mr. Sweeney, Mr. Knollenberg, Mr.
Phelps, Mr. Carson of Oklahoma, Mr. Ganske, Mr. Thune, Mr. Kerns, Ms.
Pryce of Ohio, Mr. Stump, Mr. Sensenbrenner, Mr. Otter, Mr. Rahall, Mr.
Sisisky, Mr. Hulshof, Mr. Lucas of Kentucky, Mr. Walden of Oregon, Mr.
Wynn, Mr. Ford, Mr. Reynolds, Mr. Brady of Texas, Mr. Paul, Mr. Gordon,
Mrs. Jo Ann Davis of Virginia, Mr. Costello, Mr. Gillmor, Mr. Watkins,
Mr. Putnam, Mr. Gibbons, Mr. Akin, Mr. Issa, Mr. Farr of California,
Mr. Barcia, Mrs. Myrick, Mr. Bartlett of Maryland, Mr. Chabot, Mr.
Kingston, Mr. Hefley, Mr. Gallegly, Mr. Gilman, Mr. Goss, Mr. Weldon of
Florida, Mr. DeMint, Mr. Souder, Mr. Fossella, Mr. Kolbe, Mr.
Bilirakis, Mr. Latham, Mr. Tiahrt, Mr. Taylor of North Carolina, Mr.
Scarborough, Mr. Vitter, Mr. Hostettler, Mr. Graham, Mr. Spence, Mr.
Tom Davis of Virginia, Mr. Boehner, Mr. Osborne, Mr. Bryant, Mr.
Dreier, Mr. Pickering, Mr. Thornberry, Mr. Weldon of Pennsylvania, Mr.
Baker, Mr. King, Mr. Hutchinson, Mr. McKeon, Mr. Manzullo, Mr. Smith of
Washington, Mr. Lampson, and Mrs. Clayton) introduced the following
bill; which was referred to the Committee on Ways and Means
April 3, 2001
Additional sponsors: Ms. Berkley, Mr. Stearns, Mr. Thomas, and Mr.
Hastert
April 3, 2001
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed
[Strike out all after the enacting clause and insert the part printed
in italic]
[For text of introduced bill, see copy of bill as introduced on March
14, 2001]
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A BILL
To amend the Internal Revenue Code of 1986 to phase out the estate and
gift taxes over a 10-year period, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; ETC.
(a) Short Title.--This Act may be cited as the ``Death Tax
Elimination Act of 2001''.
(b) Amendment of 1986 Code.--Except as otherwise expressly
provided, whenever in this Act an amendment or repeal is expressed in
terms of an amendment to, or repeal of, a section or other provision,
the reference shall be considered to be made to a section or other
provision of the Internal Revenue Code of 1986.
(c) Table of Contents.--
Sec. 1. Short title; etc.
TITLE I--REPEAL OF ESTATE, GIFT, AND GENERATION-SKIPPING TAXES
Sec. 101. Repeal of estate, gift, and generation-skipping taxes.
TITLE II--REDUCTIONS OF ESTATE AND GIFT TAX RATES PRIOR TO REPEAL
Sec. 201. Additional reductions of estate and gift tax rates.
TITLE III--UNIFIED CREDIT REPLACED WITH UNIFIED EXEMPTION AMOUNT
Sec. 301. Unified credit against estate and gift taxes replaced with
unified exemption amount.
TITLE IV--CARRYOVER BASIS AT DEATH; OTHER CHANGES TAKING EFFECT WITH
REPEAL
Sec. 401. Termination of step-up in basis at death.
Sec. 402. Treatment of property acquired from a decedent dying after
December 31, 2010.
TITLE V--CONSERVATION EASEMENTS
Sec. 501. Expansion of estate tax rule for conservation easements.
TITLE VI--MODIFICATIONS OF GENERATION-SKIPPING TRANSFER TAX
Sec. 601. Deemed allocation of GST exemption to lifetime transfers to
trusts; retroactive allocations.
Sec. 602. Severing of trusts.
Sec. 603. Modification of certain valuation rules.
Sec. 604. Relief provisions.
TITLE VII--EXTENSION OF TIME FOR PAYMENT OF ESTATE TAX
Sec. 701. Increase in number of allowable partners and shareholders in
closely held businesses.
TITLE I--REPEAL OF ESTATE, GIFT, AND GENERATION-SKIPPING TAXES
SEC. 101. REPEAL OF ESTATE, GIFT, AND GENERATION-SKIPPING TAXES.
(a) In General.--Subtitle B is hereby repealed.
(b) Effective Date.--The repeal made by subsection (a) shall apply
to the estates of decedents dying, and gifts and generation-skipping
transfers made, after December 31, 2010.
TITLE II--REDUCTIONS OF ESTATE AND GIFT TAX RATES PRIOR TO REPEAL
SEC. 201. ADDITIONAL REDUCTIONS OF ESTATE AND GIFT TAX RATES.
(a) Maximum Rate of Tax Reduced to 50 Percent.--
(1) In general.--The table contained in section 2001(c)(1)
is amended by striking the two highest brackets and inserting
the following:
``Over $2,500,000..............
$1,025,800, plus 50% of the
excess over
$2,500,000.''.
(2) Phase-in of reduced rate.--Subsection (c) of section
2001 is amended by adding at the end the following new
paragraph:
``(3) Phase-in of reduced rate.--In the case of decedents
dying, and gifts made, during 2002, the last item in the table
contained in paragraph (1) shall be applied by substituting
`53%' for `50%'.''.
(b) Repeal of Phaseout of Graduated Rates.--Subsection (c) of
section 2001 is amended by striking paragraph (2) and redesignating
paragraph (3), as added by subsection (a), as paragraph (2).
(c) Additional Reductions of Rates of Tax.--Subsection (c) of
section 2001, as so amended, is amended by adding at the end the
following new paragraph:
``(3) Phasedown of tax.--In the case of estates of
decedents dying, and gifts made, during any calendar year after
2003 and before 2011--
``(A) In general.--Except as provided in
subparagraph (C), the tentative tax under this
subsection shall be determined by using a table
prescribed by the Secretary (in lieu of using the table
contained in paragraph (1)) which is the same as such
table; except that--
``(i) each of the rates of tax shall be
reduced by the number of percentage points
determined under subparagraph (B), and
``(ii) the amounts setting forth the tax
shall be adjusted to the extent necessary to
reflect the adjustments under clause (i).
``(B) Percentage points of reduction.--
The number of
``For calendar year:
percentage points is:
2004................................... 1.0
2005................................... 2.0
2006................................... 3.0
2007................................... 5.0
2008................................... 7.0
2009................................... 9.0
2010................................... 11.0.
``(C) Coordination with income tax rates.--The
reductions under subparagraph (A)--
``(i) shall not reduce any rate under
paragraph (1) below the lowest rate in section
1(c) applicable to the taxable year which
includes the date of death (or, in the case of
a gift, the date of the gift), and
``(ii) shall not reduce the highest rate
under paragraph (1) below the highest rate in
section 1(c) for such taxable year.
``(D) Coordination with credit for state death
taxes.--Rules similar to the rules of subparagraph (A)
shall apply to the table contained in section 2011(b)
except that the Secretary shall prescribe percentage
point reductions which maintain the proportionate
relationship (as in effect before any reduction under
this paragraph) between the credit under section 2011
and the tax rates under subsection (c).''.
(d) Effective Dates.--
(1) Subsections (a) and (b).--The amendments made by
subsections (a) and (b) shall apply to estates of decedents
dying, and gifts made, after December 31, 2001.
(2) Subsection (c).--The amendment made by subsection (c)
shall apply to estates of decedents dying, and gifts made,
after December 31, 2003.
TITLE III--UNIFIED CREDIT REPLACED WITH UNIFIED EXEMPTION AMOUNT
SEC. 301. UNIFIED CREDIT AGAINST ESTATE AND GIFT TAXES REPLACED WITH
UNIFIED EXEMPTION AMOUNT.
(a) In General.--
(1) Estate tax.--Subsection (b) of section 2001 (relating
to computation of tax) is amended to read as follows:
``(b) Computation of Tax.--
``(1) In general.--The tax imposed by this section shall be
the amount equal to the excess (if any) of--
``(A) the tentative tax determined under paragraph
(2), over
``(B) the aggregate amount of tax which would have
been payable under chapter 12 with respect to gifts
made by the decedent after December 31, 1976, if the
provisions of subsection (c) (as in effect at the
decedent's death) had been applicable at the time of
such gifts.
``(2) Tentative tax.--For purposes of paragraph (1), the
tentative tax determined under this paragraph is a tax computed
under subsection (c) on the excess of--
``(A) the sum of--
``(i) the amount of the taxable estate, and
``(ii) the amount of the adjusted taxable
gifts, over
``(B) the exemption amount for the calendar year in
which the decedent died.
``(3) Exemption amount.--For purposes of paragraph (2), the
term `exemption amount' means the amount determined in
accordance with the following table:
``In the case of
The exemption
calendar year:
amount is:
2002 and 2003........................ $700,000
2004................................. $850,000
2005................................. $950,000
2006 or thereafter................... $1,000,000.
``(4) Adjusted taxable gifts.--For purposes of paragraph
(2), the term `adjusted taxable gifts' means the total amount
of the taxable gifts (within the meaning of section 2503) made
by the decedent after December 31, 1976, other than gifts which
are includible in the gross estate of the decedent.''.
(2) Gift tax.--Subsection (a) of section 2502 (relating to
computation of tax) is amended to read as follows:
``(a) Computation of Tax.--
``(1) In general.--The tax imposed by section 2501 for each
calendar year shall be the amount equal to the excess (if any)
of--
``(A) the tentative tax determined under paragraph
(2) for such calendar year, over
``(B) the aggregate amount of tax that would have
been payable under this chapter with respect to gifts
made by the donor in preceding calendar periods if the
tax had been computed under the provisions of section
2001(c) as in effect for such calendar year.
``(2) Tentative tax.--For purposes of paragraph (1), the
tentative tax determined under this paragraph for a calendar
year is a tax computed under section 2001(c) on the excess of--
``(A) the aggregate sum of the taxable gifts for
such calendar year and for each of the preceding
calendar periods, over
``(B) the exemption amount under section 2001(b)(3)
for such calendar year.''.
(b) Repeal of Unified Credits.--
(1) Section 2010 (relating to unified credit against estate
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