[House Report 109-517]
[From the U.S. Government Publishing Office]



109th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     109-517

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 PROVIDING FOR CONSIDERATION OF H.R. 5638, PERMANENT ESTATE TAX RELIEF 
                              ACT OF 2006

                                _______
                                

   June 21, 2006.--Referred to the House Calendar and ordered to be 
                                printed

                                _______
                                

Mr. Hastings of Washington, from the Committee on Rules, submitted the 
                               following

                              R E P O R T

                       [To accompany H. Res. 885]

    The Committee on Rules, having had under consideration 
House Resolution 885, by a nonrecord vote, report the same to 
the House with the recommendation that the resolution be 
adopted.

                SUMMARY OF PROVISIONS OF THE RESOLUTION

    The resolution provides for the consideration of H.R. 5638, 
the Permanent Estate Tax Relief Act of 2006, under a closed 
rule. The rule provides one hour of debate in the House equally 
divided and controlled by the chairman and ranking minority 
member of the Committee on Ways and Means. The rule waives all 
points of order against consideration of the bill.
    The rule provides that the amendment printed in this report 
shall be considered as adopted. Finally, the rule provides one 
motion to recommit with or without instructions.

                         EXPLANATION OF WAIVERS

    The Committee is not aware of any points of order against 
consideration of the bill. The waiver of all points of order 
against consideration of the bill is prophylactic in nature.

                            COMMITTEE VOTES

    Pursuant to clause 3(b) of House rule XIII the results of 
each record vote on an amendment or motion to report, together 
with the names of those voting for and against, are printed 
below:

Rules Committee record vote No. 227

    Date: June 21, 2006.
    Measure: H.R. 5638, Permanent Estate Tax Relief Act of 
2006.
    Motion by: Mr. McGovern.
    Summary of motion: To make in order and provide the 
appropriate waivers for the amendment offered by Representative 
Pomeroy, which makes the effective date of the bill January 1, 
2007, dedicates estate taxes to the Social Security Trust Fund 
and requires additional IRS resources to reduce the tax gap by 
5% annually.
    Results: Defeated 3 to 7.
    Vote by Members: Hastings (WA)--Nay; Sessions--Nay; 
Putnam--Nay; Capito--Nay; Bishop--Nay; Gingrey--Nay; McGovern--
Yea; Hastings (FL)--Yea; Matsui--Yea; Dreier--Nay.

            SUMMARY OF AMENDMENT TO BE CONSIDERED AS ADOPTED

    Thomas (CA): Manager's Amendment. Makes a technical change 
to H.R. 5638 by adding to Section 3, paragraph (b) (relating to 
conforming amendments) an additional conforming amendment to 
clarify the portability rules relating to the generation 
skipping transfer tax. Also indexes the $5 million exemption 
amount to reflect inflation.

             TEXT OF AMENDMENT TO BE CONSIDERED AS ADOPTED

  Page 2, strike lines 21 through 23, and insert the following:
          ``(2) Applicable exclusion amount.--
                  ``(A) In general.--For purposes of this 
                subsection, the applicable exclusion amount is 
                $5,000,000.
                  ``(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 $100,000, such 
                amount shall be rounded to the nearest multiple 
                of $100,000.''.
  Page 8, strike lines 10 through 12, and insert the following:
          ``(3) Basic exclusion amount.--
                  ``(A) In general.--For purposes of this 
                subsection, the basic exclusion amount is 
                $5,000,000.
                  ``(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 $100,000, such 
                amount shall be rounded to the nearest multiple 
                of $100,000.''.
  Page 10, after line 16, insert the following:
          (2) Section 2631(c) of such Code is amended by 
        striking ``the applicable exclusion amount'' and 
        inserting ``the basic exclusion amount''.
  Page 10, line 17, strike ``(2)'' and insert ``(3)''.

                                  
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