[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 29 Introduced in Senate (IS)]







105th CONGRESS
  1st Session
                                 S. 29

 To repeal the Federal estate and gift taxes and the tax on generation-
                          skipping transfers.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 21, 1997

   Mr. Lugar introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
 To repeal the Federal estate and gift taxes and the tax on generation-
                          skipping transfers.

    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 and Gift Tax Repeal Act of 
1997''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) The economy of the United States cannot achieve strong, 
        sustained growth without adequate levels of savings to fuel 
        productive activity. Inadequate savings have been shown to lead 
        to lower productivity, stagnating wages, and reduced standards 
        of living.
            (2) Savings levels in the United States have steadily 
        declined over the past 25 years, and have lagged behind the 
        industrialized trading partners of the United States.
            (3) These anemic savings levels have contributed to the 
        country's long-term downward trend in real economic growth, 
        which averaged close to 3.5 percent over the last 100 years but 
        has slowed to 2.4 percent over the past quarter century.
            (4) Congress should work toward reforming the entire 
        Federal tax code to end its bias against savings and eliminate 
        double taxation.
            (5) Repealing the estate and gift tax would contribute to 
        the goals of expanding savings and investment, boosting 
        entrepreneurial activity, and expanding economic growth. The 
        estate tax is harmful to the economy because of its high 
        marginal rates and its multiple taxation of income.
            (6) Abolishing the estate tax would restore a measure of 
        fairness to the Federal tax system. Families should be able to 
        pass on the fruits of labor to the next generation without 
        realizing a taxable event.

SEC. 3. REPEAL OF FEDERAL TRANSFER TAXES.

    (a) In General.--Subtitle B of the Internal Revenue Code of 1986 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 the date of enactment of this Act.
    (c) Technical and Conforming Changes.--The Secretary of the 
Treasury or the Secretary's delegate shall, as soon as practicable but 
in any event not later than 90 days after the date of enactment of this 
Act, submit to the Committee on Ways and Means of the House of 
Representatives and the Committee on Finance of the Senate a draft of 
any technical and conforming changes in the Internal Revenue Code of 
1986 which are necessary to reflect throughout such Code the changes in 
the substantive provisions of law made by this Act.
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