[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4136 Introduced in House (IH)]







107th CONGRESS
  2d Session
                                H. R. 4136

  To use the estate tax revenue to finance an outpatient prescription 
                      drug program under Medicare.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 10, 2002

  Mr. Frank introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
  To use the estate tax revenue to finance an outpatient prescription 
                      drug program under Medicare.

    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 ``Medicare Outpatient Prescription 
Drug Coverage Funding Act of 2002''.

SEC. 2. TRANSFER OF FEDERAL ESTATE TAX REVENUES TO MEDICARE PROGRAM TO 
              OFFSET COSTS OF AN OUTPATIENT PRESCRIPTION DRUG BENEFIT.

    (a) Transfer to Federal Hospital Insurance Trust Fund.--Section 
1817(a) of the Social Security Act (42 U.S.C. 1395i(a)) is amended--
            (1) by striking ``and'' at the end of paragraph (1),
            (2) by striking the period at the end of paragraph (2) and 
        inserting ``; and'', and
            (3) by inserting after paragraph (2) the following new 
        paragraph:
            ``(3) the taxes imposed by chapter 11 of the Internal 
        Revenue Code of 1986 (relating to estate taxes) reported to the 
        Secretary of the Treasury or his delegate on tax returns under 
        subtitle F of such Code, as determined by the Secretary of the 
        Treasury by applying the applicable rate of tax under such 
        chapter to such taxable estate.''.
    (b) Establishment of Separate Account for Outpatient Prescription 
Drug Benefit.--Section 1817 of such Act (42 U.S.C. 1395i) is amended by 
adding at the end the following new subsection:
    ``(l) Outpatient Prescription Drug Account.--
            ``(1) Establishment.--There is hereby established in the 
        Trust Fund an expenditure account to be known as the 
        `Outpatient Prescription Drug Account'.
            ``(2) Crediting of funds.--The Managing Trustee shall 
        credit to the Outpatient Prescription Drug Account such amounts 
        as may be deposited in the Trust Fund pursuant to subsection 
        (a)(3).
            ``(3) Use of funds.--Funds credited to the Outpatient 
        Prescription Drug Account may only be used to pay for 
        outpatient prescription drugs furnished under this title.''.
    (c) Effective Date.--The amendments made by this section apply to 
payments received by the Secretary of the Treasury on or after the date 
of the enactment of this Act for taxes imposed by chapter 11 of the 
Internal Revenue Code of 1986.

SEC. 3. ESTATE, GIFT, AND GENERATION-SKIPPING TRANSFER TAX PROVISIONS 
              MADE PERMANENT.

    (a) Maximum Rate of Tax.--The table in subparagraph (B) of section 
2001(c)(2) of the Internal Revenue Code of 1986 is amended by striking 
the item relating to 2007, 2008, and 2009 and inserting the following 
new item:

    ``2007 and thereafter.........................       45 percent.''.
    (b) Exemption Amount.--The table in section 2010(c) of such Code is 
amended by striking the item relating to 2009 and inserting the 
following new item:

                  ``2009 and thereafter..............    $3,500,000.''.
    (c) Repeal of Certain Estate, Gift, and Generation-Skipping 
Transfer Tax Provisions.--
            (1) In general.--The following provisions of title V of the 
        Economic Growth and Tax Relief Reconciliation Act of 2001 (and 
        the amendments made by such subtitle) are hereby repealed and 
        the Internal Revenue Code of 1986 shall be applied and 
        administered as if such provisions had never been enacted:
                    (A) Subtitle A.
                    (B) Subsections (c), (d), (e), and (f)(3) of 
                section 511.
                    (C) Subsections (b)(2) and (e)(2) of section 521.
                    (D) Subtitle E.
            (2) Conforming amendment.--Section 521(e) of the Economic 
        Growth and Tax Relief Reconciliation Act of 2001 (as amended by 
        paragraph (1)) is further amended--
                    (A) in paragraph (1) by striking ``paragraphs (2) 
                and (3)'' and inserting ``paragraph (2)'', and
                    (B) by redesignating paragraph (3) as paragraph 
                (2).
    (d) Repeal of Sunset of Provisions of Act Relating to Estate, Gift, 
and Generation-Skipping Transfer Tax.--Section 901 of the Economic 
Growth and Tax Relief Reconciliation Act of 2001 (Public Law 107-16) is 
amended--
            (1) in subsection (a) by striking ``shall not apply--'' and 
        all that follows and inserting ``(other than title V) shall not 
        apply to taxable, plan, or limitation years beginning after 
        December 31, 2010.'', and
            (2) in subsection (b) by striking ``, estates, gifts, and 
        transfers''.
    (e) Effective Date.--The amendments made by this section shall take 
effect as if included in the provisions of the Economic Growth and Tax 
Relief Reconciliation Act of 2001 to which they relate.
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