[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2936 Introduced in House (IH)]







107th CONGRESS
  1st Session
                                H. R. 2936

To amend the Internal Revenue Code of 1986 to impose a 20 percent rate 
                  of tax on taxable estates and gifts.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 21, 2001

  Mr. Frost 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 impose a 20 percent rate 
                  of tax on taxable estates and gifts.

    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 Simplification Act''.

SEC. 2. 20 PERCENT RATE OF TAX ON ESTATES AND GIFTS.

    (a) Estate Tax.--Section 2001 of the Internal Revenue Code of 1986 
is amended by striking subsections (b), (c), (d), and (e) and by 
inserting after subsection (a) the following new subsection:
    ``(b) Computation of Tax.--The tax imposed by this section shall be 
the amount equal to the excess (if any) of--
            ``(1) 20 percent of the sum of--
                    ``(A) the amount of the taxable estate, and
                    ``(B) the amount of the adjusted taxable gifts, 
                over
            ``(2) the aggregate amount of tax paid under chapter 12 
        with respect to gifts made by the decedent after December 31, 
        1976.
For purposes of paragraph (1)(B), the term `adjusted taxable gifts' 
means the total amount of the taxable gifts (within the meaning of 
section 2503) made by the decedent after December 31, 1976, other than 
gifts which are includible in the gross estate of the decedent.''.
    (b) Gift Tax.--
            (1) In general.--Section 2502 of such Code is amended to 
        read as follows:

``SEC. 2502. RATE OF TAX.

    ``(a) General Rule.--The tax imposed by section 2501 for each 
calendar year shall be an amount equal to 20 percent of the sum of the 
taxable gifts for such calendar year.
    ``(b) Tax To Be Paid by Donor.--The tax imposed by section 2501 
shall be paid by the donor.''.
            (2) Conforming amendments.--
                    (A) Subchapter A of chapter 12 of such Code is 
                amended by striking section 2504.
                    (B) The table of sections for such subchapter is 
                amended by striking the item relating to section 2504.
    (c) Conforming Amendments.--
            (1) So much of section 2010(c) of such Code as precedes the 
        table is amended to read as follows:
    ``(c) Applicable Credit Amount.--For purposes of this section, the 
applicable credit amount is 20 percent of the applicable exclusion 
amount determined in accordance with the following table:''.
            (2) Section 2056A(b)(2) of such Code is amended by striking 
        subparagraph (B) and redesignating subparagraph (C) as 
        subparagraph (B).
            (3) Subsection (b) of section 2101 of such Code is amended 
        to read as follows:
    ``(b) Computation of Tax.--The tax imposed by this section shall be 
the amount equal to the excess (if any) of--
            ``(1) the 20 percent of the sum of--
                    ``(A) the amount of the taxable estate, and
                    ``(B) the amount of the adjusted taxable gifts, 
                over
            ``(2) the aggregate amount of tax paid under chapter 12 
        with respect to gifts made by the decedent after December 31, 
        1976.''.
            (4) Section 6601(j)(2)(A)(i) of such Code is amended by 
        striking ``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'' and inserting ``tax which 
        would be determined under section 2001(b)(1) if the amount with 
        respect to which such tax''.
            (5) Section 511 (and the amendments made by such section) 
        of the Economic Growth and Tax Relief Reconciliation Act of 
        2001, other than subsection (e) thereof and so much of 
        subsection (f)(3) thereof as applies to such subsection (e), is 
        hereby repealed and the Internal Revenue Code of 1986 shall be 
        applied and administered as if such section had never been 
        enacted.
    (d) Effective Date.--The amendments made by this section shall 
apply to the estates of decedents dying, and gifts made, after December 
31, 2001.
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