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106TH CONGRESS

1ST SESSION H. R. 8

To amend the Internal Revenue Code of 1986 to phaseout the estate and

gift taxes over a 10-year period.

IN THE HOUSE OF REPRESENTATIVES

FEBRUARY 25, 1999

Ms. DUNN (for herself and Mr. TANNER) 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 phaseout

the estate and gift taxes over a 10-year period.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Death Tax Elimination

5 Act’’.

6 SEC. 2. PHASEOUT OF ESTATE AND GIFT TAXES.

7 (a) REPEAL OF ESTATE AND GIFT TAXES.—Subtitle

8 B of the Internal Revenue Code of 1986 (relating to estate

9 and gift taxes) is repealed effective with respect to estates
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1 of decedents dying, and gifts made, after December 31,

2 2009.

3 (b) PHASEOUT OF TAX.—Subsection (c) of section

4 2001 of such Code (relating to imposition and rate of tax)

5 is amended by adding at the end the following new para6 graph:

7 ‘‘(3) PHASEOUT OF TAX.—In the case of es8 tates of decedents dying, and gifts made, during any

9 calendar year after 1999 and before 2010—

10 ‘‘(A) IN GENERAL.—The tentative tax

11 under this subsection shall be determined by

12 using a table prescribed by the Secretary (in

13 lieu of using the table contained in paragraph

14 (1)) which is the same as such table; except

15 that—

16 ‘‘(i) each of the rates of tax shall be

17 reduced (but not below zero) by the num18 ber of percentage points determined under

19 subparagraph (B), and

20 ‘‘(ii) the amounts setting forth the tax

21 shall be adjusted to the extent necessary to

22 reflect the adjustments under clause (i).

23 ‘‘(B) PERCENTAGE POINTS OF REDUC24 TION.—

The number of

‘‘For calendar year: percentage points is:

2000 ......................................................................................... 5
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The number of

‘‘For calendar year: percentage points is:

2001 ......................................................................................... 10

2002 ......................................................................................... 15

2003 ......................................................................................... 20

2004 ......................................................................................... 25

2005 ......................................................................................... 30

2006 ......................................................................................... 35

2007 ......................................................................................... 40

2008 ......................................................................................... 45

2009 ......................................................................................... 50.

1 ‘‘(C) COORDINATION WITH PARAGRAPH

2 (2).—Paragraph (2) shall be applied by reduc3 ing the 55 percent percentage contained therein

4 by the number of percentage points determined

5 for such calendar year under subparagraph (B).

6 ‘‘(D) COORDINATION WITH CREDIT FOR

7 STATE DEATH TAXES.—Rules similar to the

8 rules of subparagraph (A) shall apply to the

9 table contained in section 2011(b) except that

10 the number of percentage points referred to in

11 subparagraph (A)(i) shall be determined under

12 the following table:

The number of

‘‘For calendar year: percentage points is:

2000 ......................................................................................... 11⁄2

2001 ......................................................................................... 3

2002 ......................................................................................... 41⁄2

2003 ......................................................................................... 6

2004 ......................................................................................... 71⁄2

2005 ......................................................................................... 9

2006 ......................................................................................... 101⁄2

2007 ......................................................................................... 12

2008 ......................................................................................... 131⁄2

2009 ......................................................................................... 15.’’
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1 (c) EFFECTIVE DATE.—The amendments made by

2 this section shall apply to estates of decedents dying, and

3 gifts made, after December 31, 1999.

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