[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5138 Introduced in House (IH)]







106th CONGRESS
  2d Session
                                H. R. 5138

  To amend the Internal Revenue Code of 1986 to increase the unified 
 credit against estate and gift taxes to the equivalent of $4,000,000.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 7, 2000

 Mr. Moran of Kansas 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 increase the unified 
 credit against estate and gift taxes to the equivalent of $4,000,000.

    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 2000''.

SEC. 2. UNIFIED CREDIT INCREASED TO EQUIVALENT OF $4,000,000 EXCLUSION; 
              INFLATION ADJUSTMENT OF UNIFIED CREDIT.

    (a) In General.--Subsection (c) of section 2010 of the Internal 
Revenue Code of 1986 (relating to applicable credit amount) is amended 
by striking all that follows ``were the applicable exclusion amount'' 
and inserting ``. For purposes of the preceding sentence, the 
applicable exclusion amount is $4,000,000.''
    (b) Inflation Adjustment.--Section 2010 of such Code is amended by 
redesignating subsection (d) as subsection (e) and by inserting after 
subsection (c) the following new subsection:
    ``(d) Cost-of-Living Adjustment.--In the case of any decedent 
dying, and gift made, in a calendar year after 2001, the $4,000,000 
amount set forth in subsection (c) shall be increased by an amount 
equal to--
            ``(1) $4,000,000, multiplied by
            ``(2) the cost-of-living adjustment determined under 
        section 1(f)(3) for such calendar year by substituting 
        `calendar year 2000' for `calendar year 1992' in subparagraph 
        (B) thereof.
If any amount as adjusted under the preceding sentence is not a 
multiple of $10,000, such amount shall be rounded to the nearest 
multiple of $10,000.''
    (c) Conforming Amendment.--Subparagraph (A) of section 2057(a)(3) 
of such Code is amended by striking ``$625,000'' and inserting ``the 
excess of the applicable exclusion amount (determined without regard to 
this paragraph) over $675,000''.
    (d) Effective Date.--The amendments made by this section shall 
apply to estates of decedents dying, and gifts made, after the date of 
the enactment of this Act.
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