I 

108TH CONGRESS 

1ST SESSION H. R. 51

To repeal the Federal death tax, including the estate and gift taxes and 

the tax on generation-skipping transfers. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 7, 2003

Mr. COX introduced the following bill; which was referred to the Committee 

on Ways and Means 

A BILL

To repeal the Federal death tax, including the 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. 
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1 Throughout their lives, they pay taxes on the income 

2 and gains from their labor and their investment. Be3 cause of the heavy burden of income taxes, property 

4 taxes, and other levies, it is enormously difficult to 

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

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

7 about to be achieved, families discover that between 

8 37 percent and 55 percent of their after-tax savings 

9 are confiscated by Federal death taxes. 

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

11 lifelong habits of thrift; they discourage entrepre12 neurship; they penalize families; and they have a 

13 negative effect on other tax revenue sources. 

14 (3) These taxes raise almost no material rev15 enue for the Federal Government. In fiscal year 

16 2002, they produced about 1 percent of total Fed17 eral revenues. 

18 (4) The waste and economic inefficiency caused 

19 by death taxes is well known. American families em20 ploy legions of tax accountants and lawyers each 

21 year to set up trusts and other prolix devices de22 signed to avoid these onerous levies. The make-work 

23 imposed upon the economy comprises billions of dol24 lars. 
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1 (5) To pay these excessive taxes, many small 

2 businesses must liquidate all or part of their assets. 

3 By causing business closures, these taxes constrict 

4 business activity, increase unemployment, and re5 duce tax revenues to the Federal Government. 

6 (6) Independent analyses indicate that, were 

7 these onerous taxes repealed, the Nation’s gross do8 mestic product, Federal and State tax revenues, em9 ployment base, and capital formation would increase 

10 substantially. According to a recent study by the 

11 Joint Economic Committee, these taxes have re12 duced the stock of capital in the United States by 

13 $497,000,000,000, reduced annual Federal income 

14 tax receipts by $20,000,000,000, caused family busi15 nesses to divert resources from investment, and en16 couraged the development of environmentally sen17 sitive land. 

18 (7) Repealing these taxes will ensure economic 

19 fairness for all American families and businesses 

20 and economic growth and prosperity for the Nation 

21 as a whole. 

22 SEC. 3. REPEAL OF FEDERAL TRANSFER TAXES. 

23 (a) GENERAL RULE.—Subtitle B of the Internal Rev24 enue Code of 1986 (relating to estate, gift, and genera25 tion-skipping taxes) is hereby repealed. 
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1 (b) EFFECTIVE DATE.—The repeal made by sub2 section (a) shall apply to the estates of decedents dying, 

3 and gifts and generation-skipping transfers made, after 

4 December 31, 2002.

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