[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 51 Introduced in House (IH)]







108th CONGRESS
  1st Session
                                 H. R. 51

 To repeal the Federal death tax, including the estate and gift taxes 
             and the tax on generation-skipping transfers.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 7, 2003

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

_______________________________________________________________________

                                 A BILL


 
 To repeal the Federal death tax, including the estate and gift taxes 
             and the tax on generation-skipping transfers.

    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 ``Family Heritage Preservation Act''.

SEC. 2. FINDINGS.

    Congress finds that:
            (1) Hard working American men and women spend a lifetime 
        saving to provide for their children and grandchildren, paying 
        taxes all the while. Throughout their lives, they pay taxes on 
        the income and gains from their labor and their investment. 
        Because of the heavy burden of income taxes, property taxes, 
        and other levies, it is enormously difficult to accumulate 
        savings for a family's future. Worst of all, when the purpose 
        of that hard earned saving is about to be achieved, families 
        discover that between 37 percent and 55 percent of their after-
        tax savings are confiscated by Federal death taxes.
            (2) These transfer, estate, and gift taxes punish lifelong 
        habits of thrift; they discourage entrepreneurship; they 
        penalize families; and they have a negative effect on other tax 
        revenue sources.
            (3) These taxes raise almost no material revenue for the 
        Federal Government. In fiscal year 2002, they produced about 1 
        percent of total Federal revenues.
            (4) The waste and economic inefficiency caused by death 
        taxes is well known. American families employ legions of tax 
        accountants and lawyers each year to set up trusts and other 
        prolix devices designed to avoid these onerous levies. The 
        make-work imposed upon the economy comprises billions of 
        dollars.
            (5) To pay these excessive taxes, many small businesses 
        must liquidate all or part of their assets. By causing business 
        closures, these taxes constrict business activity, increase 
        unemployment, and reduce tax revenues to the Federal 
        Government.
            (6) Independent analyses indicate that, were these onerous 
        taxes repealed, the Nation's gross domestic product, Federal 
        and State tax revenues, employment base, and capital formation 
        would increase substantially. According to a recent study by 
        the Joint Economic Committee, these taxes have reduced the 
        stock of capital in the United States by $497,000,000,000, 
        reduced annual Federal income tax receipts by $20,000,000,000, 
        caused family businesses to divert resources from investment, 
        and encouraged the development of environmentally sensitive 
        land.
            (7) Repealing these taxes will ensure economic fairness for 
        all American families and businesses and economic growth and 
        prosperity for the Nation as a whole.

SEC. 3. REPEAL OF FEDERAL TRANSFER TAXES.

    (a) General Rule.--Subtitle B of the Internal Revenue Code of 1986 
(relating to estate, gift, and generation-skipping taxes) is hereby 
repealed.
    (b) Effective Date.--The repeal made by subsection (a) shall apply 
to the estates of decedents dying, and gifts and generation-skipping 
transfers made, after December 31, 2002.
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