I
104TH CONGRESS
1ST SESSION
H. R. 784
To repeal the Federal estate and gift taxes and the tax on generation-
skipping transfers.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 1, 1995
Mr. COX (for himself, Mr. ANDREWS, Mr. ARMEY, Mr. BAKER of Louisiana,
Mr. BILBRAY, Mr. BURTON of Indiana, Mr. CANADY of Florida, Mr.
CHRYSLER, Mr. CRAMER, Mr. DOOLITTLE, Mr. DORNAN, Mr. DREIER,
Mr. HERGER, Mr. HUTCHINSON, Mr. KING, Mr. MANZULLO, Mr. MOOR-
HEAD, Mr. PARKER, Mr. ROHRABACHER, Mr. SENSENBRENNER, and Mr.
SOLOMON) introduced the following bill; which was referred to the Com-
mittee 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
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 inheritance 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
1994, they produced only 1 percent of total Federal
revenues.
(4) The waste and economic inefficiency caused
by inheritance taxes is well known. American fami-
lies employ legions of tax accountants and lawyers
each year to set up trusts and other prolix devices
designed to avoid these onerous levies. The make-
work imposed upon the economy comprises billions
of dollars.
(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.
(6) Independent analyses indicate that, were
these onerous taxes repealed, the Nation’s GDP,
Federal and State tax revenues, employment base,
and capital formation would increase substantially.
According to one such survey, repealing these taxes
would increase GDP by $79,220,000,000, create
228,000 
new 
jobs, 
and 
increase 
savings 
by
$630,000,000,000 by the end of the century.
(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 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