[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8 Introduced in House (IH)]







106th CONGRESS
  1st Session
                                 H. R. 8

 To amend the Internal Revenue Code of 1986 to phaseout the estate and 
                   gift taxes over a 10-year period.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 25, 1999

 Ms. Dunn (for herself and Mr. Tanner) 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 phaseout the estate and 
                   gift taxes over a 10-year period.

    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 ``Death Tax Elimination Act''.

SEC. 2. PHASEOUT OF ESTATE AND GIFT TAXES.

    (a) Repeal of Estate and Gift Taxes.--Subtitle B of the Internal 
Revenue Code of 1986 (relating to estate and gift taxes) is repealed 
effective with respect to estates of decedents dying, and gifts made, 
after December 31, 2009.
    (b) Phaseout of Tax.--Subsection (c) of section 2001 of such Code 
(relating to imposition and rate of tax) is amended by adding at the 
end the following new paragraph:
            ``(3) Phaseout of tax.--In the case of estates of decedents 
        dying, and gifts made, during any calendar year after 1999 and 
        before 2010--
                    ``(A) In general.--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 (but not below zero) 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:
    2000..........................................                   5 
    2001..........................................                  10 
    2002..........................................                  15 
    2003..........................................                  20 
    2004..........................................                  25 
    2005..........................................                  30 
    2006..........................................                  35 
    2007..........................................                  40 
    2008..........................................                  45 
    2009..........................................                  50.
                    ``(C) Coordination with paragraph (2).--Paragraph 
                (2) shall be applied by reducing the 55 percent 
                percentage contained therein by the number of 
                percentage points determined for such calendar year 
                under subparagraph (B).
                    ``(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 number of percentage points referred to 
                in subparagraph (A)(i) shall be determined under the 
                following table:

                                                          The number of
``For calendar year:                              percentage points is:
    2000..........................................              1\1/2\ 
    2001..........................................                   3 
    2002..........................................              4\1/2\ 
    2003..........................................                   6 
    2004..........................................              7\1/2\ 
    2005..........................................                   9 
    2006..........................................             10\1/2\ 
    2007..........................................                  12 
    2008..........................................             13\1/2\ 
    2009..........................................                15.''
    (c) Effective Date.--The amendments made by this section shall 
apply to estates of decedents dying, and gifts made, after December 31, 
1999.
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