I
107TH CONGRESS
2D SESSION
H. R. 4136
To use the estate tax revenue to finance an outpatient prescription drug
program under Medicare.
IN THE HOUSE OF REPRESENTATIVES
APRIL 10, 2002
Mr. FRANK introduced the following bill; which was referred to the Committee
on Ways and Means
A BILL
To use the estate tax revenue to finance an outpatient
prescription drug program under Medicare.
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 ‘‘Medicare Outpatient
Prescription Drug Coverage Funding Act of 2002’’.
SEC. 2. TRANSFER OF FEDERAL ESTATE TAX REVENUES TO
MEDICARE PROGRAM TO OFFSET COSTS OF
AN OUTPATIENT PRESCRIPTION DRUG BEN-
EFIT.
(a) TRANSFER TO FEDERAL HOSPITAL INSURANCE
TRUST FUND.—Section 1817(a) of the Social Security
Act (42 U.S.C. 1395i(a)) is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(1),
(2) by striking the period at the end of para-
graph (2) and inserting ‘‘; and’’, and
(3) by inserting after paragraph (2) the fol-
lowing new paragraph:
‘‘(3) the taxes imposed by chapter 11 of the In-
ternal Revenue Code of 1986 (relating to estate
taxes) reported to the Secretary of the Treasury or
his delegate on tax returns under subtitle F of such
Code, as determined by the Secretary of the Treas-
ury by applying the applicable rate of tax under
such chapter to such taxable estate.’’.
(b) ESTABLISHMENT OF SEPARATE ACCOUNT FOR
OUTPATIENT PRESCRIPTION DRUG BENEFIT.—Section
1817 of such Act (42 U.S.C. 1395i) is amended by adding
at the end the following new subsection:
‘‘(l) OUTPATIENT PRESCRIPTION DRUG ACCOUNT.—
‘‘(1) ESTABLISHMENT.—There is hereby estab-
lished in the Trust Fund an expenditure account to
be known as the ‘Outpatient Prescription Drug Ac-
count’.
‘‘(2) CREDITING
OF
FUNDS.—The Managing
Trustee shall credit to the Outpatient Prescription
Drug Account such amounts as may be deposited in
the Trust Fund pursuant to subsection (a)(3).
‘‘(3) USE OF FUNDS.—Funds credited to the
Outpatient Prescription Drug Account may only be
used to pay for outpatient prescription drugs fur-
nished under this title.’’.
(c) EFFECTIVE DATE.—The amendments made by
this section apply to payments received by the Secretary
of the Treasury on or after the date of the enactment of
this Act for taxes imposed by chapter 11 of the Internal
Revenue Code of 1986.
SEC. 3. ESTATE, GIFT, AND GENERATION-SKIPPING TRANS-
FER TAX PROVISIONS MADE PERMANENT.
(a) MAXIMUM RATE OF TAX.—The table in subpara-
graph (B) of section 2001(c)(2) of the Internal Revenue
Code of 1986 is amended by striking the item relating to
2007, 2008, and 2009 and inserting the following new
item:
‘‘2007 and thereafter ............................................................... 45 percent.’’.
(b) EXEMPTION AMOUNT.—The table in section
2010(c) of such Code is amended by striking the item re-
lating to 2009 and inserting the following new item:
‘‘2009 and thereafter ............................................
$3,500,000.’’.
(c) REPEAL OF CERTAIN ESTATE, GIFT, AND GEN-
ERATION-SKIPPING TRANSFER TAX PROVISIONS.—
(1) IN GENERAL.—The following provisions of
title V of the Economic Growth and Tax Relief Rec-
onciliation Act of 2001 (and the amendments made
by such subtitle) are hereby repealed and the Inter-
nal Revenue Code of 1986 shall be applied and ad-
ministered as if such provisions had never been en-
acted:
(A) Subtitle A.
(B) Subsections (c), (d), (e), and (f)(3) of
section 511.
(C) Subsections (b)(2) and (e)(2) of sec-
tion 521.
(D) Subtitle E.
(2) 
CONFORMING
AMENDMENT.—Section
521(e) of the Economic Growth and Tax Relief Rec-
onciliation Act of 2001 (as amended by paragraph
(1)) is further amended—
(A) in paragraph (1) by striking ‘‘para-
graphs (2) and (3)’’ and inserting ‘‘paragraph
(2)’’, and
(B) by redesignating paragraph (3) as
paragraph (2).
(d) REPEAL OF SUNSET OF PROVISIONS OF ACT RE-
LATING TO ESTATE, GIFT, AND GENERATION-SKIPPING
TRANSFER TAX.—Section 901 of the Economic Growth
and Tax Relief Reconciliation Act of 2001 (Public Law
107–16) is amended—
(1) in subsection (a) by striking ‘‘shall not
apply—’’ and all that follows and inserting ‘‘(other
than title V) shall not apply to taxable, plan, or limi-
tation years beginning after December 31, 2010.’’,
and
(2) in subsection (b) by striking ‘‘, estates,
gifts, and transfers’’.
(e) EFFECTIVE DATE.—The amendments made by
this section shall take effect as if included in the provisions
of the Economic Growth and Tax Relief Reconciliation Act
of 2001 to which they relate.
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