I
105TH CONGRESS
2D SESSION
H. R. 3879
To amend the Internal Revenue Code of 1986 to phaseout the estate and
gift taxes over a 10-year period.
IN THE HOUSE OF REPRESENTATIVES
MAY 14, 1998
Ms. DUNN of Washington (for herself, Mr. TANNER, Mr. GINGRICH, Mr. COX
of California, Mr. JEFFERSON, Mr. CRANE, Mr. BUNNING of Kentucky,
Mr. HERGER, Mr. MCCRERY, Mr. SAM JOHNSON, Mr. ENGLISH of Penn-
sylvania, Mr. WATKINS, Mr. HOSTETTLER, Mr. PICKERING, Mr.
WELLER, Mr. CAMP, and Mrs. THURMAN) 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 phaseout
the estate and gift taxes over a 10-year period.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Estate and Gift Tax
Rate Reduction Act of 1998’’.
SEC. 2. FINDINGS.
The Congress finds and declares that—
(1) estate and gift tax rates, which reach as
high as 55 percent of a decedent’s taxable estate,
are in most cases substantially in excess of the tax
rates imposed on the same amount of regular income
and capital gains income; and
(2) a reduction in estate and gift tax rates to
a level more comparable with the rates of tax im-
posed on regular income and capital gains income
will make the estate and gift tax less confiscatory
and mitigate its negative impacts on American fami-
lies and businesses.
SEC. 3. PHASEOUT OF ESTATE AND GIFT TAXES.
(a) REPEAL OF ESTATE AND GIFT TAXES.—Subtitle
B of the Internal Revenue Code of 1986 (relating to estate
and gift taxes) is repealed effective with respect to estates
of decedents dying, and gifts made, after December 31,
2008.
(b) PHASEOUT OF TAX.—Subsection (c) of section
2001 of such Code (relating to imposition and rate of tax)
is amended by adding at the end the following new para-
graph:
‘‘(3) PHASEOUT OF TAX.—In the case of es-
tates of decedents dying, and gifts made, during any
calendar year after 1998 and before 2009—
‘‘(A) IN
GENERAL.—The tentative tax
under this subsection shall be determined by
using a table prescribed by the Secretary (in
lieu of using the table contained in paragraph
(1)) which is the same as such table; except
that—
‘‘(i) each of the rates of tax shall be
reduced (but not below zero) by the num-
ber of percentage points determined under
subparagraph (B), and
‘‘(ii) the amounts setting forth the tax
shall be adjusted to the extent necessary to
reflect the adjustments under clause (i).
‘‘(B) PERCENTAGE
POINTS
OF
REDUC-
TION.—
The number of
‘‘For calendar year:
percentage points is:
1999 .........................................................................................
2000 .........................................................................................
2001 .........................................................................................
2002 .........................................................................................
2003 .........................................................................................
2004 .........................................................................................
2005 .........................................................................................
2006 .........................................................................................
2007 .........................................................................................
2008 .........................................................................................
50.
‘‘(C) COORDINATION
WITH
PARAGRAPH
(2).—Paragraph (2) shall be applied by reduc-
ing the 55 percent percentage contained therein
by the number of percentage points determined
for such calendar year under subparagraph (B).
‘‘(D) COORDINATION
WITH
CREDIT
FOR
STATE
DEATH
TAXES.—Rules similar to the
rules of subparagraph (A) shall apply to the
table contained in section 2011(b) except that
the number of percentage points referred to in
subparagraph (A)(i) shall be determined under
the following table:
The number of
‘‘For calendar year:
percentage points is:
1999 .........................................................................................
11⁄2
2000 .........................................................................................
2001 .........................................................................................
41⁄2
2002 .........................................................................................
2003 .........................................................................................
71⁄2
2004 .........................................................................................
2005 .........................................................................................
101⁄2
2006 .........................................................................................
2007 .........................................................................................
131⁄2
2008 .........................................................................................
15.’’
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to estates of decedents dying, and
gifts made, after December 31, 1998.
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