[Congressional Record Volume 152, Number 72 (Thursday, June 8, 2006)]
[Senate]
[Pages S5672-S5673]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 4194. Mr. CARPER submitted an amendment intended to be proposed by 
him to the bill H.R. 8, to make the repeal of the estate tax permanent; 
which was ordered to lie on the table; as follows:

       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. PERMANENT EXTENSION OF ESTATE TAX AS IN EFFECT IN 
                   2009.

       (a) Exclusion Equivalent of Unified Credit Equal to 
     $3,500,000.--Subsection (c) of section 2010 of the Internal 
     Revenue Code of 1986 (relating to unified credit against 
     estate tax) is amended to read as follows:
       ``(c) Applicable Credit Amount.--
       ``(1) In general.--For purposes of this section, the 
     applicable credit amount is the amount of the tentative tax 
     which would be determined under section 2001(c) if the sum 
     determined under subsection (b)(1) were equal to the 
     applicable exclusion amount.
       ``(2) Applicable exclusion amount.--
       ``(A) In general.--For purposes of this subsection, the 
     applicable exclusion amount is $3,500,000.
       ``(B) Inflation adjustment.--In the case of any decedent 
     dying in a calendar year after 2010, the dollar amount in 
     subparagraph (A) shall be increased by an amount equal to--
       ``(i) such dollar amount, multiplied by
       ``(ii) the cost-of-living adjustment determined under 
     section 1(f)(3) for such calendar year by substituting 
     `calendar year 2009' 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.''.
       (b) Maximum Estate Tax Rate Equal to 45 Percent.--
     Subsection (c) of section 2001 of the Internal Revenue Code 
     of 1986 (relating to imposition and rate of tax) is amended--
       (1) by striking ``but not over $2,000,000'' in the table 
     contained in paragraph (1),
       (2) by striking the last 2 items in such table,
       (3) by striking ``(1) in general.--'', and
       (4) by striking paragraph (2).
       (c) Modifications of Estate and Gift Taxes To Reflect 
     Differences in Unified Credit Resulting From Different Tax 
     Rates.--
       (1) Estate tax.--
       (A) In general.--Section 2001(b)(2) of the Internal Revenue 
     Code of 1986 (relating to computation of tax) is amended by 
     striking ``if the provisions of subsection (c) (as in effect 
     at the decedent's death)'' and inserting ``if the 
     modifications described in subsection (g)''.
       (B) Modifications.--Section 2001 of such Code is amended by 
     adding at the end the following new subsection:
       ``(g) Modifications to Gift Tax Payable to Reflect 
     Different Tax Rates.--For purposes of applying subsection 
     (b)(2) with respect to 1 or more gifts, the rates of tax 
     under subsection (c) in effect at the decedent's death shall, 
     in lieu of the rates of tax

[[Page S5673]]

     in effect at the time of such gifts, be used both to 
     compute--
       ``(1) the tax imposed by chapter 12 with respect to such 
     gifts, and
       ``(2) the credit allowed against such tax under section 
     2505, including in computing--
       ``(A) the applicable credit amount under section 
     2505(a)(1), and
       ``(B) the sum of the amounts allowed as a credit for all 
     preceding periods under section 2505(a)(2).

     For purposes of paragraph (2)(A), the applicable credit 
     amount for any calendar year before 1998 is the amount which 
     would be determined under section 2010(c) if the applicable 
     exclusion amount were the dollar amount under section 
     6018(a)(1) for such year.''.
       (2) Gift tax.--Section 2505(a) of such Code (relating to 
     unified credit against gift tax) is amended by adding at the 
     end the following new flush sentence:

     ``For purposes of applying paragraph (2) for any calendar 
     year, the rates of tax in effect under section 2502(a)(2) for 
     such calendar year shall, in lieu of the rates of tax in 
     effect for preceding calendar periods, be used in determining 
     the amounts allowable as a credit under this section for all 
     preceding calendar periods.''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to estates of decedents dying, generation-
     skipping transfers, and gifts made, after December 31, 2009.
       (e) Modifications to Estate Tax.--
       (1) In general.--Subtitles A and E of title V of the 
     Economic Growth and Tax Relief Reconciliation Act of 2001, 
     and the amendments made by such subtitles, are hereby 
     repealed; and the Internal Revenue Code of 1986 shall be 
     applied as if such subtitles, and amendments, had never been 
     enacted.
       (2) Sunset not to apply.--
       (A) Subsection (a) of section 901 of the Economic Growth 
     and Tax Relief Reconciliation Act of 2001 is amended by 
     striking ``this Act'' and all that follows and inserting 
     ``this Act (other than title V) shall not apply to taxable, 
     plan, or limitation years beginning after December 31, 
     2010.''.
       (B) Subsection (b) of such section 901 is amended by 
     striking ``, estates, gifts, and transfers''.
       (3) Repeal of deadwood.--Sections 2011, 2057, and 2604 of 
     the Internal Revenue Code of 1986 are hereby repealed.
                                 ______
                                 
  SA 4195. Mr. CARPER submitted an amendment intended to be proposed by 
him to the bill H.R. 8, to make the repeal of the estate tax permanent; 
which was ordered to lie on the table; as follows:

       Amend the title as to read:
       ``An Act to amend the Internal Revenue Code of 1986 to make 
     permanent the estate tax in effect in 2009, including the 
     step-up-in-basis regime, and for other purposes.''

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