I 
113TH CONGRESS 
2D SESSION 
H. R. 5872 
To amend the Internal Revenue Code of 1986 to allow an annual elective 
surcharge in lieu of estate tax, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 11, 2014 
Mr. HARRIS 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 allow an 
annual elective surcharge in lieu of estate tax, 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; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘American Solution for Simplifying the Estate Tax Act 
of 2014’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
Sec. 2. Congressional findings. 
Sec. 3. Elective simplified estate tax. 
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(5) The current method of collection of the es-
tate tax leads many wealthy Americans to lock up 
capital in trusts to minimize or eliminate tax liabil-
ity, meaning that billions of dollars are left idle in-
stead of facilitating the creation of new business 
ventures that could stimulate the economy. 
(6) As recently as 2009, of the 34,000 estate 
tax returns filed that year, only half owed any estate 
tax, indicating that many wealthy Americans have 
found means to avoid paying this tax. In 2012, 
9,400 Americans still had to file estate tax returns, 
even with the higher $5 million threshold. 
(7) It is in the national interest to modify the 
mechanism for collection of revenues from those 
Americans who have the largest estates, provided 
that it is done in a revenue neutral manner that en-
sures the ongoing collection of an appropriate per-
centage of the historical average of 1 percent of total 
IRS tax receipts that reflects the lower amount of 
estate tax revenues generated under the 2010 and 
2012 amendments due to a higher exemption 
amount. 
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SEC. 3. ELECTIVE SIMPLIFIED ESTATE TAX. 
(a) IN GENERAL.—Chapter 11 of the Internal Rev-
enue Code of 1986 is amended by adding at the end the 
following new subchapter: 
‘‘Subchapter D—Simplified Estate Tax 
‘‘Sec. 2301. Simplified estate tax. 
‘‘Sec. 2302. Imposition and rate. 
‘‘Sec. 2303. Election. 
‘‘Sec. 2304. Seven taxable year minimum. 
‘‘SEC. 2301. SIMPLIFIED ESTATE TAX. 
‘‘In the case of an individual (and, if married, such 
individual’s spouse) who elects the application of this sub-
chapter— 
‘‘(1) chapter 11 shall thereafter not apply with 
respect to the transfer of the estate of such indi-
vidual (or such spouse), 
‘‘(2) chapter 13 shall thereafter not apply with 
respect to any generation-skipping transfer (as de-
fined in section 2611) made by such individual (or 
such spouse), and 
‘‘(3) a tax shall be imposed by section 2302 
with respect to such individual (and such spouse) for 
the taxable year of the election and each taxable 
year thereafter. 
‘‘SEC. 2302. IMPOSITION AND RATE. 
‘‘(a) IN GENERAL.—The tax imposed by this section 
for any taxable year shall be treated as an increase in the 
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taxpayer’s tax under chapter 1 for the taxable year by an 
amount equal to 1 percent of the modified adjusted gross 
income of the taxpayer for the taxable year. 
‘‘(b) MODIFIED ADJUSTED GROSS INCOME.—For 
purposes of this section, the term ‘modified adjusted gross 
income’ means adjusted gross income increased by— 
‘‘(1) any amount excluded from gross income 
under section 911, 931, or 933, or 
‘‘(2) any amount of interest received or accrued 
by the taxpayer during the taxable year which is ex-
empt from tax. 
‘‘SEC. 2303. ELECTION. 
‘‘(a) IN GENERAL.—Except as the Secretary shall by 
regulation prescribe in the case of separation, divorce, re-
marriage, or other circumstances the Secretary determines 
equitable, election for this subchapter to apply, once made, 
shall be irrevocable. 
‘‘(b) MARRIED COUPLES TO FILE JOINTLY.—If the 
taxpayer and the taxpayer’s spouse elect the application 
of this subchapter and are married (within the meaning 
of section 7703) at the end of the taxable year, the tax-
payer and the taxpayer’s spouse shall file a joint return 
for the taxable year. 
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‘‘SEC. 2304. SEVEN TAXABLE YEAR MINIMUM. 
‘‘(a) IN GENERAL.—In the case of a decedent whose 
last taxable year is not at least the 7th taxable year for 
which the tax under section 2302 is imposed, the applica-
tion of this subchapter shall be treated as not having been 
elected. 
‘‘(b) TRANSITION RULE FOR 2015 AND 2016.— 
‘‘(1) IN GENERAL.—In the case of a decedent 
who first elected the application of this subchapter 
during 2015 or 2016, subsection (a) shall not apply 
if the executor of the decedent’s estate elects to in-
crease the amount of the tax imposed under chapter 
1 for the decedent’s last taxable year by an amount 
equal to— 
‘‘(A) the highest amount of tax imposed by 
section 2302 with respect to such decedent for 
any taxable year (including the decedent’s last 
taxable year), multiplied by 
‘‘(B) an amount equal to the difference 
of— 
‘‘(i) 7, over 
‘‘(ii) the number of taxable years for 
which such tax was imposed with respect 
to such decedent (including the decedent’s 
last taxable year). 
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‘‘(2) SPECIAL
RULE
FOR
DECEDENT
DYING 
DURING YEAR OF ELECTION.—In the case of a dece-
dent to whom paragraph (1) applies and who first 
elected the application of this subchapter with re-
spect to the last taxable year of the decedent, the 
amount under subparagraph (A) shall not be less 
than the amount of tax which would have been im-
posed by section 2302 had such election first been 
elected with respect to the preceding taxable year. 
‘‘(c) CREDIT FOR TAXES PAID.— 
‘‘(1) IN GENERAL.—In the case of a decedent 
to which subsection (a) applies, the Secretary shall 
by regulation provide for allowing for a credit 
against the tax imposed by chapter 11 with respect 
to the decedent to account for any taxes paid by the 
decedent under section 2302. 
‘‘(2) INTEREST.—The amount of any credit de-
termined under paragraph (1) with respect to any 
tax paid shall include interest, which shall be deter-
mined— 
‘‘(A) at the overpayment rate established 
under section 6621, and 
‘‘(B) from the date of payment of such tax 
to the due date of the amount against which 
the credit is allowed.’’. 
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(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after, 
and estates of decedents dying after, December 31, 2014. 
SEC. 4. CARRY-OVER BASIS. 
(a) IN GENERAL.—Part II of subchapter O of chap-
ter 1 of such Code is amended by inserting after section 
1021 the following new section: 
‘‘SEC. 1022. TREATMENT OF PROPERTY ACQUIRED FROM A 
DECEDENT WHO ELECTED SIMPLIFIED ES-
TATE TAX TREATMENT. 
‘‘(a) IN GENERAL.—In the case of property acquired 
from a decedent who elected the application of subchapter 
D of chapter 11— 
‘‘(1) such property shall be treated for purposes 
of this subtitle as transferred by gift, and 
‘‘(2) the basis of the person acquiring property 
from such a decedent shall be the lesser of— 
‘‘(A) the adjusted basis of the decedent, or 
‘‘(B) the fair market value of the property 
at the date of the decedent’s death. 
‘‘(b) PROPERTY ACQUIRED FROM THE DECEDENT.— 
For purposes of this section, the following property shall 
be considered to have been acquired from the decedent: 
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