Given the task definition and input, reply with output. In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.

SECTION 1. RESTORATION OF ESTATE TAX; REPEAL OF CARRYOVER BASIS.

(a) In General.--Subtitles A and E of title V of the Economic
Growth and Tax Relief Reconciliation Act of 2001, and the amendments
made by such subtitles, are hereby repealed; and the Internal Revenue
Code of 1986 shall be applied as if such subtitles, and amendments, had
never been enacted.
(b) Sunset Not to Apply.--
(1) Subsection (a) of section 901 of the Economic Growth
and Tax Relief Reconciliation Act of 2001 is amended by
striking ''this Act'' and all that follows and inserting ''this
Act (other than title V) shall not apply to taxable, plan, or
limitation years beginning after December 31, 2010.''.
(2) Subsection (b) of such section 901 is amended by
striking '', estates, gifts, and transfers''.
(c) Conforming Amendments.--Subsections (d) and (e) of section 511
of the Economic Growth and Tax Relief Reconciliation Act of 2001, and
the amendments made by such subsections, are hereby repealed; and the
Internal Revenue Code of 1986 shall be applied as if such subsections,
and amendments, had never been enacted.

SEC. 2. ESTATE AND GIFT TAX RATES REDUCED TO 15 PERCENT OR, IF LOWER,
THE GENERALLY APPLICABLE CAPITAL GAINS RATE FOR
INDIVIDUALS.

(a) Estate Tax.--
(1) In general.--Section 2001 of the Internal Revenue Code
of 1986 (relating to estate tax) is amended by striking
subsections (b) and (c) and by inserting after subsection (a)
the following new subsection:
''(b) Computation of Tax.--The tax imposed by this section shall be
the amount equal to the excess (if any) of--
''(1) 15 percent of the sum of--
''(A) the amount of the taxable estate, and
''(B) the amount of the adjusted taxable gifts,
over
''(2) the aggregate amount of tax paid under chapter 12
with respect to gifts made by the decedent after December 31,
1976.
For purposes of subparagraph (A)(ii), the term 'adjusted taxable gifts'
means the total amount of the taxable gifts (within the meaning of
section 2503) made by the decedent after December 31, 1976, other than
gifts which are includible in the gross estate of the decedent.''.
(2) Conforming amendments.--
(A) Subsection (c) of section 2010 of such Code is
amended by striking ''the applicable credit amount''
and all that follows through ''the applicable exclusion
amount'' and inserting ''the applicable credit amount
shall be the applicable percentage (as defined in
section 2001(b)(2)) of the applicable exclusion
amount''.
(B) Subsection (b) of section 2101 of such Code is
amended to read as follows:
''(b) Computation of Tax.--The tax imposed by this section shall be
the amount equal to the excess (if any) of--
''(1) 15 percent of the sum of--
''(A) the amount of the taxable estate, and
''(B) the amount of the adjusted taxable gifts,
over
''(2) the aggregate amount of tax paid under chapter 12
with respect to gifts made by the decedent after December 31,
1976.''.
(C) Subsection (c) of section 2102 of such Code, as
in effect prior to its redesignation by section
532(c)(7)(B) of the Economic Growth and Tax Relief
Reconciliation Act of 2001, is amended--
(i) by striking ''$13,000'' each place it
appears and inserting ''$12,000'', and
(ii) by striking ''$46,800'' and inserting
''$35,000''.
(D) Subsection (a) of section 2201 of such Code is
amended by striking ''rate schedule set forth in
section 2001(c)'' and inserting ''applicable percentage
(as defined in section 2001(b)(2)''.
(b) Gift Tax.--
(1) In general.--Section 2502 of such Code is amended to
read as follows:

''SEC. 2502. RATE OF TAX.

''(a) General Rule.--The tax imposed by section 2501 for each
calendar year shall be an amount equal to 15 percent of the sum of the
taxable gifts for such calendar year.
''(b) Tax to Be Paid by Donor.--The tax imposed by section 2501
shall be paid by the donor.''.
(2) Conforming amendments.--
(A) Subchapter A of chapter 12 of such Code is
amended by striking section 2504.
(B) The table of sections for such subchapter is
amended by striking the item relating to section 2504.
(c) Effective Date.--The amendments made by this section shall
apply to estates of decedents dying, and gifts made, after December 31,
2006.

SEC. 3. $5,000,000 EXEMPTION FROM ESTATE AND GIFT TAXES.

(a) In General.--Subsection (c) of section 2010 of the Internal
Revenue Code of 1986 (relating to applicable credit amount), as amended
by section 2, is amended by striking ''the applicable exclusion
amount'' and all that follows and inserting ''$5,000,000.''.
(b) Gift Tax.--Paragraph (1) of section 2505(a) of such Code
(relating to general rule) is amended by striking ''(determined as if
the applicable exclusion amount were $1,000,000)''.
(c) Effective Date.--The amendment made by this section shall apply
to estates of decedents dying, and gifts made, after December 31, 2006.
Repeals provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001 which eliminated the estate and generation skipping transfer tax and carryover basis rules for estates.

Reduces the estate tax rate to the lower of 15% or the capital gains income tax rate generally applicable to individual taxpayers. Reduces the gift tax rate to 15%.

Establishes a single estate and gift tax unified credit amount of $5 million.