I

106TH CONGRESS

1ST SESSION H. R. 86

To repeal the Federal estate and gift taxes and the tax on generationskipping transfers.

IN THE HOUSE OF REPRESENTATIVES

JANUARY 6, 1999

Mr. COX (for himself, Mr. ADERHOLT, Mr. ANDREWS, Mr. ARMEY, Mr. BACHUS, Mr. BAKER, Mr. BARCIA, Mr. BARR of Georgia, Mr. BARTLETT of

Maryland, Mr. BARTON of Texas, Mr. BASS, Mr. BILBRAY, Mr. BILIRAKIS, Mr. BLILEY, Mr. BLUNT, Mr. BOEHLERT, Mr. BOEHNER, Mr.

BONILLA, Mrs. BONO, Mr. BOUCHER, Mr. BRADY OF TEXAS, Mr. BRYANT, Mr. BURR of North Carolina, Mr. BURTON of Indiana, Mr. CALVERT, Mr. CAMP, Mr. CAMPBELL, Mr. CANNON, Mr. CANADY of Florida,

Mr. CHABOT, Mr. CHAMBLISS, Mrs. CHENOWETH, Mr. CRAMER, Mr.

COBLE, Mr. COBURN, Mr. COLLINS, Mr. COMBEST, Mr. CONDIT, Mr.

COOK, Mr. COOKSEY, Mr. CRANE, Mrs. CUBIN, Mr. CUNNINGHAM, Ms.

DANNER, Mr. DEAL of Georgia, Mr. DELAY, Mr. DEMINT, Mr. DICKEY,

Mr. DOOLITTLE, Mr. DREIER, Mr. DUNCAN, Ms. DUNN, Mr. EHRLICH,

Mrs. EMERSON, Mr. ENGLISH, Mr. EVERETT, Mr. EWING, Mr. FOLEY,

Mr. FOSSELLA, Mrs. FOWLER, Mr. FORBES, Mr. FRANKS of New Jersey,

Mr. GALLEGLY, Mr. GEKAS, Mr. GIBBONS, Mr. GILLMOR, Mr. GILMAN,

Mr. GOODE, Mr. GOODLING, Mr. GOODLATTE, Mr. GOSS, Mr. GRAHAM,

Ms. GRANGER, Mr. GREEN of Wisconsin, Mr. GREENWOOD, Mr. HALL

of Texas, Mr. HANSEN, Mr. HASTINGS of Washington, Mr. HAYES, Mr.

HAYWORTH, Mr. HEFLEY, Mr. HERGER, Mr. HILL of Montana, Mr.

HILLEARY, Mr. HORN, Mr. HOSTETTLER, Mr. HULSHOF, Mr. HUNTER,

Mr. HUTCHINSON, Mr. HYDE, Mr. ISTOOK, Mr. JENKINS, Mr. SAM

JOHNSON of Texas, Mr. JONES of North Carolina, Mr. KASICH, Mrs.

KELLY, Mr. KING, Mr. KINGSTON, Mr. KNOLLENBERG, Mr. KOLBE, Mr.

KUYKENDALL, Mr. LARGENT, Mr. LATHAM, Mr. LAHOOD, Mr.

LATOURETTE, Mr. LEWIS of California, Mr. LEWIS of Kentucky, Mr.

LINDER, Mr. LIVINGSTON, Mr. LOBIONDO, Mr. LUCAS of Oklahoma, Mr.

MCCRERY, Mr. MCINTOSH, Mr. MCINNIS, Mr. MCHUGH, Mr. MCKEON,

Mr. MCCOLLUM, Mr. MANZULLO, Mr. MARTINEZ, Mr. METCALF, Mr.

MICA, Mr. MILLER of Florida, Mr. GARY MILLER of California, Mr.

MORAN of Kansas, Mrs. MYRICK, Mr. NETHERCUTT, Mr. NEY, Mrs.

NORTHUP, Mr. NORWOOD, Mr. OXLEY, Mr. PACKARD, Mr. PAUL, Mr.

PEASE, Mr. PETERSON of Pennsylvania, Mr. PICKERING, Mr. PITTS, Mr.

POMBO, Mr. PORTER, Ms. PRYCE of Ohio, Mr. RADANOVICH, Mr. RA-
2

•H 86 IH

HALL, Mr. RAMSTAD, Mr. RILEY, Mr. ROGAN, Mr. ROHRABACHER, Ms.

ROS-LEHTINEN, Mrs. ROUKEMA, Mr. ROYCE, Mr. RYUN of Kansas, Mr.

SALMON, Mr. SAXTON, Mr. SCARBOROUGH, Mr. SCHAFFER, Mr. SENSENBRENNER, Mr. SESSIONS, Mr. SHADEGG, Mr. SHAW, Mr. SHIMKUS, Mr.

SHUSTER, Mr. SKEEN, Mr. SMITH of Texas, Mr. SMITH of Michigan, Mr.

SOUDER, Mr. SPENCE, Mr. STEARNS, Mr. STUMP, Mr. SUNUNU, Mr.

SWEENEY, Mr. TALENT, Mr. TANCREDO, Mr. TAUZIN, Mr. TAYLOR of

North Carolina, Mr. TERRY, Mr. THORNBERRY, Mr. THUNE, Mr.

TIAHRT, Mr. TOOMEY, Mr. UPTON, Mr. WALDEN of Oregon, Mr. WALSH,

Mr. WAMP, Mr. WATKINS, Mr. WATTS of Oklahoma, Mr. WELDON of

Pennsylvania, Mr. WELDON of Florida, Mrs. WILSON, Mr. WHITFIELD,

Mr. WICKER, Mr. WOLF, and Mr. YOUNG of Alaska) introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To repeal the Federal estate and gift taxes and the tax

on generation-skipping transfers.

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 ‘‘Family Heritage Pres5 ervation Act’’.

6 SEC. 2. FINDINGS.

7 Congress finds that:

8 (1) Hard working American men and women

9 spend a lifetime saving to provide for their children

10 and grandchildren, paying taxes all the while.

11 Throughout their lives, they pay taxes on the income

12 and gains from their labor and their investment. Be13 cause of the heavy burden of income taxes, property

14 taxes, and other levies, it is enormously difficult to
3

•H 86 IH

1 accumulate savings for a family’s future. Worst of

2 all, when the purpose of that hard earned saving is

3 about to be achieved, families discover that between

4 37 percent and 55 percent of their after-tax savings

5 is confiscated by Federal estate taxes.

6 (2) These transfer, estate, and gift taxes punish

7 lifelong habits of thrift; they discourage entrepre8 neurship; they penalize families; and they have a

9 negative effect on other tax revenue sources.

10 (3) These taxes raise almost no material reve11 nue for the Federal Government. In fiscal year

12 1998, they produced about 1 percent of total Fed13 eral revenues.

14 (4) The waste and economic inefficiency caused

15 by estate taxes is well known. American families em16 ploy legions of tax accountants and lawyers each

17 year to set up trusts and other prolix devices de18 signed to avoid these onerous levies. The make-work

19 imposed upon the economy comprises billions of dol20 lars.

21 (5) In order to pay these excessive taxes, many

22 small businesses must liquidate all or part of their

23 assets. By causing business closures, these taxes

24 constrict business activity, increase unemployment,

25 and reduce tax revenues to the Federal Government.
4

•H 86 IH

1 (6) Independent analyses indicate that, were

2 these onerous taxes repealed, the Nation’s gross do3 mestic product, Federal and State tax revenues, em4 ployment base, and capital formation would increase

5 substantially. According to a December 1998 study

6 by the Joint Economic Committee, these taxes have

7 reduced the stock of capital in the United States by

8 $497,000,000,000, reduce annual Federal income

9 tax receipts by $20,000,000,000, and cause family

10 businesses to divert resources from investment and

11 to develop environmentally sensitive land.

12 (7) Repealing these taxes will ensure economic

13 fairness for all American families and businesses, as

14 well as economic growth and prosperity for the Na15 tion as a whole.

16 SEC. 3. REPEAL OF FEDERAL TRANSFER TAXES.

17 (a) GENERAL RULE.—Subtitle B of the Internal Rev18 enue Code of 1986 (relating to estate, gift, and genera19 tion-skipping taxes) is hereby repealed.

20 (b) EFFECTIVE DATE.—The repeal made by sub21 section (a) shall apply to the estates of decedents dying,

22 and gifts and generation-skipping transfers made, after

23 the date of the enactment of this Act.

Æ