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HALL, Mr. RAMSTAD, Mr. RILEY, Mr. ROGAN, Mr. ROHRABACHER, Ms.
ROS-LEHTINEN, Mrs. ROUKEMA, Mr. ROYCE, Mr. RYUN of Kansas, Mr.
SALMON, Mr. SAXTON, Mr. SCARBOROUGH, Mr. SCHAFFER, Mr. SENSEN-
BRENNER, Mr. SESSIONS, Mr. SHADEGG, Mr. SHAW, Mr. SHIMKUS, Mr.
SHUSTER, Mr. SKEEN, Mr. SMITH of Texas, Mr. SMITH of Michigan, Mr.
SOUDER, Mr. SPENCE, Mr. STEARNS, Mr. STUMP, Mr. SUNUNU, Mr.
SWEENEY, Mr. TALENT, Mr. TANCREDO, Mr. TAUZIN, Mr. TAYLOR of
North Carolina, Mr. TERRY, Mr. THORNBERRY, Mr. THUNE, Mr.
TIAHRT, Mr. TOOMEY, Mr. UPTON, Mr. WALDEN of Oregon, Mr. WALSH,
Mr. WAMP, Mr. WATKINS, Mr. WATTS of Oklahoma, Mr. WELDON of
Pennsylvania, Mr. WELDON of Florida, Mrs. WILSON, Mr. WHITFIELD,
Mr. WICKER, Mr. WOLF, and Mr. YOUNG of Alaska) introduced the fol-
lowing bill; which was referred to the Committee on Ways and Means
A BILL
To repeal the Federal estate and gift taxes and the tax
on generation-skipping transfers.
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 ‘‘Family Heritage Pres-
ervation Act’’.
SEC. 2. FINDINGS.
Congress finds that:
(1) Hard working American men and women
spend a lifetime saving to provide for their children
and grandchildren, paying taxes all the while.
Throughout their lives, they pay taxes on the income
and gains from their labor and their investment. Be-
cause of the heavy burden of income taxes, property
taxes, and other levies, it is enormously difficult to
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accumulate savings for a family’s future. Worst of
all, when the purpose of that hard earned saving is
about to be achieved, families discover that between
37 percent and 55 percent of their after-tax savings
is confiscated by Federal estate taxes.
(2) These transfer, estate, and gift taxes punish
lifelong habits of thrift; they discourage entrepre-
neurship; they penalize families; and they have a
negative effect on other tax revenue sources.
(3) These taxes raise almost no material reve-
nue for the Federal Government. In fiscal year
1998, they produced about 1 percent of total Fed-
eral revenues.
(4) The waste and economic inefficiency caused
by estate taxes is well known. American families em-
ploy legions of tax accountants and lawyers each
year to set up trusts and other prolix devices de-
signed to avoid these onerous levies. The make-work
imposed upon the economy comprises billions of dol-
lars.
(5) In order to pay these excessive taxes, many
small businesses must liquidate all or part of their
assets. By causing business closures, these taxes
constrict business activity, increase unemployment,
and reduce tax revenues to the Federal Government.
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(6) Independent analyses indicate that, were
these onerous taxes repealed, the Nation’s gross do-
mestic product, Federal and State tax revenues, em-
ployment base, and capital formation would increase
substantially. According to a December 1998 study
by the Joint Economic Committee, these taxes have
reduced the stock of capital in the United States by
$497,000,000,000, reduce annual Federal income
tax receipts by $20,000,000,000, and cause family
businesses to divert resources from investment and
to develop environmentally sensitive land.
(7) Repealing these taxes will ensure economic
fairness for all American families and businesses, as
well as economic growth and prosperity for the Na-
tion as a whole.
SEC. 3. REPEAL OF FEDERAL TRANSFER TAXES.
(a) GENERAL RULE.—Subtitle B of the Internal Rev-
enue Code of 1986 (relating to estate, gift, and genera-
tion-skipping taxes) is hereby repealed.
(b) EFFECTIVE DATE.—The repeal made by sub-
section (a) shall apply to the estates of decedents dying,
and gifts and generation-skipping transfers made, after
the date of the enactment of this Act.
Æ