[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1614 Introduced in House (IH)]






109th CONGRESS
  1st Session
                                H. R. 1614

 To amend the Internal Revenue Code of 1986 to reduce estate tax rates 
 by 20 percent, to increase the unified credit against estate and gift 
  taxes to the equivalent of a $3,000,000 exclusion and to provide an 
      inflation adjustment of such amount, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 13, 2005

  Mrs. Lowey 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 reduce estate tax rates 
 by 20 percent, to increase the unified credit against estate and gift 
  taxes to the equivalent of a $3,000,000 exclusion and to provide an 
      inflation adjustment of such amount, and for other purposes.

    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 2005''.

SEC. 2. 20 PERCENT REDUCTION IN ESTATE TAX RATES.

    (a) In General.--Subsection (c) of section 2001 of the Internal 
Revenue Code of 1986 is amended to read as follows:
    ``(c) Rate Schedule.--

``If the amount with respect to     The tentative tax is:
        which the tentative tax is 
        to be computed is:
    Not over $10,000...............
                                        14.4% of such amount. 
    Over $10,000 but not over 
        $20,000.
                                        $1,440, plus 16% of the excess 
                                                of such amount over 
                                                $10,000 
    Over $20,000 but not over 
        $40,000.
                                        $3,040, plus 17.6% of the 
                                                excess of such amount 
                                                over $20,000 
    Over $40,000 but not over 
        $60,000.
                                        $6,560, plus 19.2% of the 
                                                excess of such amount 
                                                over $40,000 
    Over $60,000 but not over 
        $80,000.
                                        $10,400, plus 20.8% of the 
                                                excess of such amount 
                                                over $60,000 
    Over $80,000 but not over 
        $100,000.
                                        $14,560, plus 22.4% of the 
                                                excess of such amount 
                                                over $80,000 
    Over $100,000 but not over 
        $150,000.
                                        $19,040, plus 24% of the excess 
                                                of such amount over 
                                                $100,000 
    Over $150,000 but not over 
        $250,000.
                                        $31,040, plus 25.6% of the 
                                                excess of such amount 
                                                over $150,000 
    Over $250,000 but not over 
        $500,000.
                                        $56,640, plus 27.2% of the 
                                                excess of such amount 
                                                over $250,000 
    Over $500,000 but not over 
        $750,000.
                                        $124,640, plus 29.6% of the 
                                                excess of such amount 
                                                over $500,000 
    Over $750,000 but not over 
        $1,000,000.
                                        $198,640, plus 31.2% of the 
                                                excess of such amount 
                                                over $750,000 
    Over $1,000,000 but not over 
        $1,250,000.
                                        $276,640, plus 32.8% of the 
                                                excess of such amount 
                                                over $1,000,000 
    Over $1,250,000 but not over 
        $1,500,000.
                                        $358,640, plus 34.4% of the 
                                                excess of such amount 
                                                over $1,250,000 
    Over $1,500,000 but not over 
        $2,000,000.
                                        $444,640, plus 36% of the 
                                                excess of such amount 
                                                over $1,500,000 
    Over $2,000,000................
                                        $624,640, plus 39.2% of the 
                                                excess of such amount 
                                                over $2,000,000.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to estates of decedents dying, and gifts made, after the date of the 
enactment of this Act.

SEC. 3. UNIFIED CREDIT INCREASED TO EQUIVALENT OF $3,000,000 EXCLUSION; 
              INFLATION ADJUSTMENT OF UNIFIED CREDIT.

    (a) Increase in Unified Credit.--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 $3,000,000.''
    (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 2005, the $3,000,000 
amount set forth in subsection (c) shall be increased by an amount 
equal to--
            ``(1) $3,000,000, multiplied by
            ``(2) the cost-of-living adjustment determined under 
        section 1(f)(3) for such calendar year by substituting 
        `calendar year 2004' 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) 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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