I 
109TH CONGRESS 
1ST SESSION H. R. 1614 
To amend the Internal Revenue Code of 1986 to reduce estate tax rates 
by 20 percent, to increase the unified credit against estate and gift 
taxes to the equivalent of a $3,000,000 exclusion and to provide an 
inflation adjustment of such amount, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 13, 2005 
Mrs. LOWEY 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 
estate tax rates by 20 percent, to increase the unified 
credit against estate and gift taxes to the equivalent 
of a $3,000,000 exclusion and to provide an inflation 
adjustment of such amount, and for other purposes. 
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 Tax Reduction 
Act of 2005’’.
SEC. 2. 20 PERCENT REDUCTION IN ESTATE TAX RATES. 
(a) IN GENERAL.—Subsection (c) of section 2001 of 
the Internal Revenue Code of 1986 is amended to read 
as follows: 
‘‘(c) RATE SCHEDULE.— 
‘‘If the amount with respect 
to which the tentative tax 
is to be computed is: 
The tentative tax is: 
Not over $10,000 ..........................
14.4% of such amount.
Over 
$10,000 
but 
not 
over 
$20,000.
$1,440, plus 16% of the excess of 
such amount over $10,000
Over 
$20,000 
but 
not 
over 
$40,000.
$3,040, plus 17.6% of the excess of 
such amount over $20,000
Over 
$40,000 
but 
not 
over 
$60,000.
$6,560, plus 19.2% of the excess of 
such amount over $40,000
Over 
$60,000 
but 
not 
over 
$80,000.
$10,400, plus 20.8% of the excess of 
such amount over $60,000
Over 
$80,000 
but 
not 
over 
$100,000.
$14,560, plus 22.4% of the excess of 
such amount over $80,000
Over 
$100,000 
but 
not 
over 
$150,000.
$19,040, plus 24% of the excess of 
such amount over $100,000
Over 
$150,000 
but 
not 
over 
$250,000.
$31,040, plus 25.6% of the excess of 
such amount over $150,000
Over 
$250,000 
but 
not 
over 
$500,000.
$56,640, plus 27.2% of the excess of 
such amount over $250,000
Over 
$500,000 
but 
not 
over 
$750,000.
$124,640, plus 29.6% of the excess 
of such amount over $500,000
Over 
$750,000 
but 
not 
over 
$1,000,000.
$198,640, plus 31.2% of the excess 
of such amount over $750,000
Over $1,000,000 but not over 
$1,250,000.
$276,640, plus 32.8% of the excess 
of such amount over $1,000,000
Over $1,250,000 but not over 
$1,500,000.
$358,640, plus 34.4% of the excess 
of such amount over $1,250,000
Over $1,500,000 but not over 
$2,000,000.
$444,640, plus 36% of the excess of 
such amount over $1,500,000
Over $2,000,000 ............................
$624,640, plus 39.2% of the excess 
of such amount over $2,000,000.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to estates of decedents dying, and 
gifts made, after the date of the enactment of this Act.
SEC. 3. UNIFIED CREDIT INCREASED TO EQUIVALENT OF 
$3,000,000 EXCLUSION; INFLATION ADJUST-
MENT OF UNIFIED CREDIT. 
(a) INCREASE IN UNIFIED CREDIT.—Subsection (c) 
of section 2010 of the Internal Revenue Code of 1986 (re-
lating to applicable credit amount) is amended by striking 
all that follows ‘‘were the applicable exclusion amount’’ 
and inserting ‘‘. For purposes of the preceding sentence, 
the applicable exclusion amount is $3,000,000.’’ 
(b) INFLATION ADJUSTMENT.—Section 2010 of such 
Code is amended by redesignating subsection (d) as sub-
section (e) and by inserting after subsection (c) the fol-
lowing new subsection: 
‘‘(d) COST-OF-LIVING ADJUSTMENT.—In the case of 
any decedent dying, and gift made, in a calendar year 
after 2005, 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 sub-
stituting ‘calendar year 2004’ 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 round-
ed to the nearest multiple of $10,000.’’.
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to estates of decedents dying, and 
gifts made, after the date of the enactment of this Act. 
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