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[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1285 Introduced in House (IH)]

107th CONGRESS
  1st Session
                                H. R. 1285

 To amend the Internal Revenue Code of 1986 to reduce and simplify the 
                              estate tax.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             March 28, 2001

 Mr. Moore (for himself and Mr. Holden) 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 reduce and simplify the 
                              estate tax.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Estate Tax Reduction and 
Simplification Act of 2001''.

SEC. 2. INCREASE IN UNIFIED CREDIT AGAINST ESTATE AND GIFT TAXES TO 
              EXCLUSION EQUIVALENT OF $3,000,000 WHILE PRESERVING 
              STEPUP IN BASIS; INFLATION ADJUSTMENT OF CREDIT.

    (a) In General.--The table in section 2010(c) of the Internal 
Revenue Code (relating to applicable credit amount) is amended--
            (1) by striking ``2000 and 2001'' and inserting ``2000 or 
        thereafter'',
            (2) by striking ``$675,000'' and inserting ``$3,000,000'', 
        and
            (3) by striking all matter beginning with the item relating 
        to 2002 and 2003 through the end of the table.
    (b) Inflation Adjustment.--
            (1) In general.--Section 2010 of such Code is amended by 
        redesignating subsection (d) as subsection (e) and by inserting 
        after subsection (c) the following new subsection:
     ``(d) Inflation Adjustment.--In the case of any decedent dying, 
and gift made, in a calendar year after 2001, the $3,000,000 amount set 
forth in subsection (c) shall be increased by an amount equal to--
            ``(1) $3,000,000, multiplied by
            ``(2) the cost-of-living adjustment determined under 
        section 1(f)(3) for such calendar year by substituting 
        `calendar year 2000' 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.''.
    (c) Conforming Amendment.--Section 6018(a)(1) of such Code is 
amended by striking ``section 2010(c)'' and inserting ``section 2010''.

SEC. 3. SIMPLICATION OF ESTATE TAX EXCLUSION FOR FAMILY-OWNED 
              BUSINESSES AND FARMS.

    (a) In General.--Section 2057 of the Internal Revenue Code of 1986 
(relating to family-owned business interests) is hereby repealed.
    (b) Conforming Amendments.--
            (1) Paragraph (10) of section 2031(c) of such Code is 
        amended by inserting ``(as in effect on the day before the date 
        of the enactment of the Estate Tax Relief Act of 2001)'' before 
        the period.
            (2) The table of sections for part IV of subchapter A of 
        chapter 11 of such Code is amended by striking the item 
        relating to section 2057.

SEC. 4. EFFECTIVE DATE.

    The amendments made by this Act shall apply to the estates of 
decedents dying, and gifts made, after December 31, 2001.
                                 <all>
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