I 

108TH CONGRESS 

1ST SESSION H. R. 2532

To amend the Internal Revenue Code of 1986 to restore the applicability 

of the estate tax to estates over $3,000,000, to restore the 50-percent 

maximum rate, and to deposit revenues from the estate tax into Social 

Security Trust Funds. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 19, 2003

Mr. KENNEDY of Rhode Island (for himself, Ms. BALDWIN, and Mr. FRANK

of Massachusetts) 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 restore 

the applicability of the estate tax to estates over 

$3,000,000, to restore the 50-percent maximum rate, 

and to deposit revenues from the estate tax into Social 

Security Trust Funds.

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 ‘‘Save Social Security 

5 First Act of 2003’’. 
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1 SEC. 2. CONTINUATION OF ESTATE TAX; REPEAL OF CAR2 RYOVER BASIS; ETC. 

3 (a) IN GENERAL.—Subtitles A and E of title V of 

4 the Economic Growth and Tax Relief Reconciliation Act 

5 of 2001, and the amendments made by such subtitles, are 

6 hereby repealed; and the Internal Revenue Code of 1986 

7 shall be applied as if such subtitles, and amendments, had 

8 never been enacted. 

9 (b) SUNSET NOT TO APPLY.—

10 (1) Subsection (a) of section 901 of the Eco11 nomic Growth and Tax Relief Reconciliation Act of 

12 2001 is amended by striking ‘‘this Act’’ and all that 

13 follows and inserting ‘‘this Act (other than title V) 

14 shall not apply to taxable, plan, or limitation years 

15 beginning after December 31, 2010.’’. 

16 (2) Subsection (b) of such section 901 is 

17 amended by striking ‘‘, estates, gifts, and transfers’’. 

18 (c) CONFORMING AMENDMENTS.—Subsections (d) 

19 and (e) of section 511 of the Economic Growth and Tax 

20 Relief Reconciliation Act of 2001, and the amendments 

21 made by such subsections, are hereby repealed; and the 

22 Internal Revenue Code of 1986 shall be applied as if such 

23 subsections, and amendments, had never been enacted. 
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1 SEC. 3. IMMEDIATE $3,000,000 EXEMPTION; RESTORATION 

2 OF 50 PERCENT MAXIMUM RATE. 

3 (a) INCREASE IN UNIFIED CREDIT.—Subsection (c) 

4 of section 2010 of the Internal Revenue Code of 1986 (re5 lating to applicable credit amount) is amended by striking 

6 all that follows ‘‘were the applicable exclusion amount’’ 

7 and inserting ‘‘. For purposes of the preceding sentence, 

8 the applicable exclusion amount is $3,000,000.’’

9 (b) 50 PERCENT MAXIMUM ESTATE TAX RATE.—

10 Subsection (c) of section 2001 of such Code is amended—

11 (1) by striking ‘‘(1) IN GENERAL.—’’, and 

12 (2) by striking paragraph (2). 

13 (c) EFFECTIVE DATE.—The amendments made by 

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

15 gifts made, after December 31, 2003. 

16 SEC. 4. TRANSFER OF ESTATE TAX REVENUES AFTER 2009 

17 TO SOCIAL SECURITY TRUST FUNDS. 

18 (a) IN GENERAL.—Amounts equivalent to the taxes 

19 imposed by chapter 11 of the Internal Revenue Code of 

20 1986 with respect to estates of decedents dying after De21 cember 31, 2004, are hereby appropriated to—

22 (1) the Federal Old-Age and Survivors Insur23 ance Trust Fund, and 

24 (2) the Federal Disability Insurance Trust 

25 Fund. 
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1 Amounts appropriated by the preceding sentence to each 

2 such Fund for any calendar year shall be in the same pro3 portion as amounts are appropriated to such Funds dur4 ing such year without regard to this section. 

5 (b) TRANSFERS.—The amounts appropriated by sub6 section (a) to each fund shall be transferred from time 

7 to time (but not less frequently than quarterly) from the 

8 general fund of the Treasury on the basis of estimates 

9 made by the Secretary of the Treasury of the amounts 

10 referred to in subsection (a). Proper adjustments shall be 

11 made in the amounts subsequently transferred to the ex12 tent prior estimates were in excess of or less than the 

13 amounts required to be transferred.

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