[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 43 Introduced in House (IH)]







106th CONGRESS
  1st Session
                                 H. R. 43

To amend the Internal Revenue Code of 1986 to accelerate the phasein of 
        the $1,000,000 exclusion from the estate and gift taxes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 6, 1999

  Mr. Stump 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 accelerate the phasein of 
        the $1,000,000 exclusion from the estate and gift taxes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. INCREASE IN UNIFIED ESTATE AND GIFT TAX CREDIT.

    (a) Estate Tax Credit.--
            (1) Subsection (a) of section 2010 of the Internal Revenue 
        Code of 1986 (relating to unified credit against estate tax) is 
        amended by striking ``the applicable credit amount'' and 
        inserting ``$345,800''.
            (2) Paragraph (2) of section 2001(c) of such Code is 
        amended by striking ``$10,000,000'' and all that follows and 
        inserting ``$10,000,000. The amount of the increase under the 
        preceding sentence shall not exceed $705,000.''
            (3)(A) Subparagraph (A) of section 2057(a)(3) of such Code 
        is amended by striking ``the applicable exclusion amount under 
        section 2010 shall be $625,000'' and inserting ``the credit 
        under section 2010 shall be $202,050''.
            (B) Subparagraph (B) of section 2057(a)(3) of such Code is 
        amended to read as follows:
                    ``(B) Increase in unified credit if deduction is 
                less than $675,000.--If the deduction allowed by this 
                section is less than $675,000, the amount of the credit 
                under section 2010 shall be equal to the lesser of 
                $345,800 or the tentative tax which would be determined 
                under the rate schedule set forth in section 2001(c) if 
                the amount with respect to which such tentative tax is 
                computed were equal to the sum of--
                            ``(i) the excess of $675,000 over the 
                        amount of the deduction allowed, and
                            ``(ii) $625,000.''
            (4) Subparagraph (A) of section 2102(c)(3) of such Code is 
        amended by striking ``the applicable credit amount in effect 
        under section 2010(c) for the calendar year which includes the 
        date of death'' and inserting ``$345,800''.
            (5) Paragraph (1) of section 6018(a) of such Code is 
        amended by striking ``the applicable exclusion amount in effect 
        under section 2010(c) for the calendar year which includes the 
        date of death'' and inserting ``$1,000,000''.
            (6)(A) Subparagraph (A) of section 6601(j)(2) of such Code 
        is amended to read as follows:
                    ``(A) $345,800, or''.
            (B) Paragraph (3) of section 6601(j) of such Code is 
        amended--
                    (i) by striking ``$1,000,000'' each place it occurs 
                and inserting ``$345,800'', and
                    (ii) by striking ``$10,000'' each place it appears 
                and inserting ``$1,000''.
    (b) Unified Gift Tax Credit.--Paragraph (1) of section 2505(a) of 
such Code is amended to read as follows:
            ``(1) $345,800, reduced by''.
    (c) Effective Date.--The amendments made by this section shall 
apply to the estates of decedents dying, and gifts made, after December 
31, 1999.
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