[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 650 Introduced in Senate (IS)]







105th CONGRESS
  1st Session
                                 S. 650

 To amend the Internal Revenue Code of 1986 to reduce estate taxes by 
providing a 20 percent rate of tax on estates exceeding $1,000,000, and 
  a 30 percent rate of tax on estates exceeding $10,000,000, and for 
                            other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 24, 1997

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

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to reduce estate taxes by 
providing a 20 percent rate of tax on estates exceeding $1,000,000, and 
  a 30 percent rate of tax on estates exceeding $10,000,000, 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.

    This Act may be cited as the ``Estate Tax Reduction Act of 1997''.

SEC. 2. 20 PERCENT RATE OF TAX ON ESTATES EXCEEDING $1,000,000; 30 
              PERCENT RATE OF TAX ON ESTATES EXCEEDING $10,000,000.

    (a) In General.--Section 2001(c) of the Internal Revenue Code of 
1986 (relating to imposition and rate of tax) is amended to read as 
follows:
    ``(c) Rate Schedule.--

``If the amount with respect to     The tentative tax is:
        which the tentative tax to 
        be computed is:
    Not over $10,000,000...........
                                        20 percent.
    Over $10,000,000...............
                                        $2,000,000 plus 30 percent of 
                                                the excess over 
                                                $10,000,000.''.
    (b) Increase in Unified Credit.--
            (1) In general.--Section 2010(a) of the Internal Revenue 
        Code of 1986 (relating to unified credit against estate tax) is 
        amended by striking ``$192,800'' and inserting ``$200,000''.
            (2) Gift tax credit.--Section 2505(a)(1) of such Code 
        (relating to unified credit against gift tax) is amended by 
        striking ``$192,800'' and inserting ``$200,000''.
            (3) Conforming amendments.--
                    (A) Section 2102(c)(3)(A) of such Code is amended 
                by striking ``$192,800'' and inserting ``$200,000''.
                    (B) Section 6018(a)(1) of such Code is amended by 
                striking ``$600,000'' and inserting ``$1,000,000''.
    (c) Effective Date.--The amendments made by this section shall 
apply to the estates of decedents dying, and gifts made, after the date 
of the enactment of this Act.
                                 <all>