(Sec. 102) Terminates, effective January 1, 2010, the current provisions providing for determining the basis of property the acquired from a decedent and sets forth new provisions for determining the basis of certain property acquired from a decedent dying after December 31, 2009.
Title II: Reductions of Estate and Gift Tax Rates Prior to Repeal - Sets forth additional estate and gift tax reductions applicable to the period prior to repeal.
Title III: Unified Credit Replaced Unified Exemption Amount - Replaces the unified credit with a unified exemption amount.
Title IV: Modifications of Generation-Skipping Tax - Amends provisions concerning the special rules for allocation of the generation-skipping tax (GST) exemption to provide, as a general rule, that: (1) if any individual makes an indirect skip during such individual's lifetime, any unused portion of such individual's GST exemption shall be allocated to the property transferred to the extent necessary to make the inclusion ratio for such property zero; and (2) if the amount of the indirect skip exceeds such unused portion, the entire unused portion shall be allocated to the property transferred.
(Sec. 402) Declares that, if a trust is severed in a qualified severance, the trusts resulting from such severance shall be treated as separate trusts thereafter.
(Sec. 403) Revises valuation rules for gifts for which a gift tax return was filed or deemed allocation made. Provides that, if an allocation of the GST exemption to any transfers of property is deemed to have been made at the close of an estate tax inclusion period, the value of the property shall be its value at such time.
(Sec. 404) Directs the Secretary to prescribe circumstances and procedures under which extensions of time will be granted to make an allocation of GST exemption or an election not to apply specified allocation requirements to certain lifetime direct skips, indirect skips, or transfers to a particular trust.
Title V: Conservation Easements - Doubles, from 25 to 50 miles, the distance within which qualified conservation easements must be located from a metropolitan area, national park, or wilderness area and increases, from 10 to 25 miles, the distance which such easements must be from an Urban National Forest.
[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8 Introduced in House (IH)]
106th CONGRESS
1st Session
H. R. 8
To amend the Internal Revenue Code of 1986 to phaseout the estate and
gift taxes over a 10-year period.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 25, 1999
Ms. Dunn (for herself and Mr. Tanner) 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 phaseout the estate and
gift taxes over a 10-year period.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Death Tax Elimination Act''.
SEC. 2. PHASEOUT OF ESTATE AND GIFT TAXES.
(a) Repeal of Estate and Gift Taxes.--Subtitle B of the Internal
Revenue Code of 1986 (relating to estate and gift taxes) is repealed
effective with respect to estates of decedents dying, and gifts made,
after December 31, 2009.
(b) Phaseout of Tax.--Subsection (c) of section 2001 of such Code
(relating to imposition and rate of tax) is amended by adding at the
end the following new paragraph:
``(3) Phaseout of tax.--In the case of estates of decedents
dying, and gifts made, during any calendar year after 1999 and
before 2010--
``(A) In general.--The tentative tax under this
subsection shall be determined by using a table
prescribed by the Secretary (in lieu of using the table
contained in paragraph (1)) which is the same as such
table; except that--
``(i) each of the rates of tax shall be
reduced (but not below zero) by the number of
percentage points determined under subparagraph
(B), and
``(ii) the amounts setting forth the tax
shall be adjusted to the extent necessary to
reflect the adjustments under clause (i).
``(B) Percentage points of reduction.--
The number of
``For calendar year: percentage points is:
2000.......................................... 5
2001.......................................... 10
2002.......................................... 15
2003.......................................... 20
2004.......................................... 25
2005.......................................... 30
2006.......................................... 35
2007.......................................... 40
2008.......................................... 45
2009.......................................... 50.
``(C) Coordination with paragraph (2).--Paragraph
(2) shall be applied by reducing the 55 percent
percentage contained therein by the number of
percentage points determined for such calendar year
under subparagraph (B).
``(D) Coordination with credit for state death
taxes.--Rules similar to the rules of subparagraph (A)
shall apply to the table contained in section 2011(b)
except that the number of percentage points referred to
in subparagraph (A)(i) shall be determined under the
following table:
The number of
``For calendar year: percentage points is:
2000.......................................... 1\1/2\
2001.......................................... 3
2002.......................................... 4\1/2\
2003.......................................... 6
2004.......................................... 7\1/2\
2005.......................................... 9
2006.......................................... 10\1/2\
2007.......................................... 12
2008.......................................... 13\1/2\
2009.......................................... 15.''
(c) Effective Date.--The amendments made by this section shall
apply to estates of decedents dying, and gifts made, after December 31,
1999.
<all>
Motion by Senator Lott to commit to Senate Committee on Finance with instructions to report back forthwith with the text of H.R. 8 made in Senate. (consideration: CR S6663-6664)
Considered by Senate. (consideration: CR S6767-6781)
Committed to Senate Committee on Finance with instructions to report back forthwith with the text of H.R. 8 by Yea-Nay Vote. 53 - 45. Record Vote Number: 196.
Roll Call #196 (Senate)Committee on Finance. Reported back forthwith pursuant to the instructions.
Passed/agreed to in Senate: Passed Senate without amendment by Yea-Nay Vote. 59 - 39. Record Vote Number: 197.
Roll Call #197 (Senate)Passed Senate without amendment by Yea-Nay Vote. 59 - 39. Record Vote Number: 197.
Roll Call #197 (Senate)Message on Senate action sent to the House.
Presented to President.
Presented to President.
Vetoed by President.
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Vetoed by President.
The Chair laid before the House the veto message from the President.
Mr. Archer moved to postpone consideration of the veto message until Sept. 7.
On motion to postpone consideration of the veto message until Sept. 7. Agreed to without objection. (consideration: CR H7240-7241; text of Veto message: CR H7240-7241)
The Chair announced the unfinished business to be the consideration of the veto.
DEBATE - The House proceeded with one hour of debate on the veto message.
Failed of passage in House over veto: On passage, the objections of the President to the contrary notwithstanding Failed by the Yeas and Nays: (2/3 required): 274 - 157 (Roll no. 458).(consideration: CR H7284-7285, H7322-7335)
Roll Call #458 (House)Motion to refer the bill and accompanying veto message to the Committee on Ways and Means.
On passage, the objections of the President to the contrary notwithstanding Failed by the Yeas and Nays: (2/3 required): 274 - 157 (Roll no. 458). (consideration: CR H7284-7285, H7322-7335)
Roll Call #458 (House)On motion to refer the bill and the accompanying veto message to the Committee on Ways and Means. Agreed to without objection.