I

105TH CONGRESS

1ST SESSION H. R. 902

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

IN THE HOUSE OF REPRESENTATIVES

MARCH 3, 1997

Mr. COX of California (for himself, Mr. RAHALL, Mr. ANDREWS, Mr. HALL

of Texas, Mr. DELAY, Mr. LIVINGSTON, Mr. BLILEY, Mr. SOLOMON, Ms.

MOLINARI, Mr. PITTS, Mr. LARGENT, Mr. MCCOLLUM, Mr. TALENT, Mr.

BURTON of Indiana, Mr. BACHUS, Mr. BAKER, Mr. BARR of Georgia, Mr.

BARTLETT of Maryland, Mr. BILBRAY, Mr. BONILLA, Mr. BONO, Mr.

BRYANT, Mr. BUNNING, Mr. CALLAHAN, Mr. CALVERT, Mr. CANNON,

Mr. CANADY of Florida, Mr. CHABOT, Mr. CHAMBLISS, Mrs.

CHENOWETH, Mr. CHRISTENSEN, Mr. COBURN, Mr. COLLINS, Mr. COOK,

Mr. COOKSEY, Mr. CRANE, Mr. CRAPO, Mrs. CUBIN, Mr. DEAL of Georgia, Mr. DOOLITTLE, Mr. DREIER, Mr. DUNCAN, Mr. EHRLICH, Mrs.

EMERSON, Mr. FOLEY, Mr. FORBES, Mr. FOX of Pennsylvania, Mr.

GALLEGLY, Mr. GIBBONS, Mr. GOODLING, Mr. GRAHAM, Ms. GRANGER,

Mr. HASTINGS of Washington, Mr. HAYWORTH, Mr. HEFLEY, Mr.

HERGER, Mr. HILL, Mr. HORN, Mr. HOSTETTLER, Mr. HULSHOF, Mr.

HUNTER, Mr. HUTCHINSON, Mr. INGLIS of South Carolina, Mr. SAM

JOHNSON of Texas, Mr. JONES, Mrs. KELLY, Mr. KIM, Mr. KING, Mr.

KINGSTON, Mr. KNOLLENBERG, Mr. KOLBE, Mr. LATOURETTE, Mr.

LEWIS of Kentucky, Mr. LINDER, Mr. LUCAS of Oklahoma, Mr.

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

MANZULLO, Mr. METCALF, Mr. MORAN of Kansas, Mrs. MYRICK, Mr.

NORWOOD, Mr. PACKARD, Mr. PAPPAS, Mr. PARKER, Mr. PAUL, Mr.

PEASE, Mr. POMBO, Mr. RIGGS, Mr. RILEY, Mr. ROGAN, Mr.

ROHRABACHER, Mr. ROYCE, Mr. RYUN, Mr. SAXTON, Mr.

SCARBOROUGH, Mr. BOB SCHAFFER of Colorado, Mr. SENSENBRENNER,

Mr. SESSIONS, Mr. SHADEGG, Mr. SKEEN, Mr. SMITH of Texas, Mrs.

SMITH of Washington, Mr. SMITH of Michigan, Mr. SMITH of Oregon,

Mr. SNOWBARGER, Mr. STEARNS, Mr. STUMP, Mr. TAYLOR of North

Carolina, Mr. WALSH, Mr. WATTS of Oklahoma, Mr. WELDON of Pennsylvania, Mr. WELDON of Florida, and Mr. YOUNG of Alaska) introduced

the following bill; which was referred to the Committee on Ways and

Means
2

HR 902 IH

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

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

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

17 about to be achieved, families discover that between

18 37 percent and 55 percent of their after-tax savings

19 is confiscated by Federal estate taxes.
3

HR 902 IH

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

2 lifelong habits of thrift; they discourage entrepre3 neurship; they penalize families; and they have a

4 negative effect on other tax revenue sources.

5 (3) These taxes raise almost no material reve6 nue for the Federal Government. In fiscal year

7 1996, they produced less than 1 percent of total

8 Federal revenues.

9 (4) The waste and economic inefficiency caused

10 by estate taxes is well known. American families em11 ploy legions of tax accountants and lawyers each

12 year to set up trusts and other prolix devices de13 signed to avoid these onerous levies. The make-work

14 imposed upon the economy comprises billions of dol15 lars.

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

17 small businesses must liquidate all or part of their

18 assets. By causing business closures, these taxes

19 constrict business activity, increase unemployment,

20 and reduce tax revenues to the Federal Government.

21 (6) Independent analyses indicate that, were

22 these onerous taxes repealed, the Nation’s gross do23 mestic product, Federal and State tax revenues, em24 ployment base, and capital formation would increase
4

HR 902 IH

1 substantially. According to one such survey, repeal2 ing these taxes will increase the Nation’s economic

3 output by $77,000,000,000, create more than

4 1,000,000 new jobs, and increase personal income by

5 $56,000,000,000 over the next 7 years.

6 (7) Repealing these taxes will ensure economic

7 fairness for all American families and businesses, as

8 well as economic growth and prosperity for the Na9 tion as a whole.

10 SEC. 3. REPEAL OF FEDERAL TRANSFER TAXES.

11 (a) GENERAL RULE.—Subtitle B of the Internal Rev12 enue Code of 1986 (relating to estate, gift, and genera13 tion-skipping taxes) is hereby repealed.

14 (b) EFFECTIVE DATE.—The repeal made by sub15 section (a) shall apply to the estates of decedents dying,

16 and gifts and generation-skipping transfers made, after

17 the date of the enactment of this Act.

Æ