Amends the Internal Revenue Code to: (1) reduce estate and gift tax rates to 30 percent; (2) increase the exclusion equivalent of the unified credit to $10 million; and (3) increase the annual gift tax exclusion to $50,000.
[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2480 Introduced in House (IH)]
108th CONGRESS
1st Session
H. R. 2480
To amend the Internal Revenue Code of 1986 to reduce estate and gift
tax rates to 30 percent, to increase the exclusion equivalent of the
unified credit to $10,000,000, and to increase the annual gift tax
exclusion to $50,000.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 16, 2003
Mr. Leach 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 reduce estate and gift
tax rates to 30 percent, to increase the exclusion equivalent of the
unified credit to $10,000,000, and to increase the annual gift tax
exclusion to $50,000.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. ESTATE AND GIFT TAX RATES REDUCED TO 30 PERCENT.
(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) 30 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 paragraph (1)(B), 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 (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) 30 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.''
(B) Subsection (c) of section 2102 of such Code is
amended--
(i) by striking ``$13,000'' each place it
appears and inserting ``$20,000'', and
``(ii) by striking ``$46,800'' and
inserting ``$52,500''.
(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 30 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 the date of
the enactment of this Act.
SEC. 2. UNIFIED CREDIT INCREASED TO EQUIVALENT OF $10,000,000
EXCLUSION; INFLATION ADJUSTMENT OF UNIFIED CREDIT.
(a) In General.--Subsection (c) of section 2010 of the Internal
Revenue Code of 1986 (relating to applicable credit amount) is amended
by striking all that follows ``were the applicable exclusion amount''
and inserting ``. For purposes of the preceding sentence, the
applicable exclusion amount is $10,000,000.''
(b) Inflation Adjustment.--Section 2010 of such Code is amended by
redesignating subsection (d) as subsection (e) and by inserting after
subsection (c) the following new subsection:
``(d) Cost-of-Living Adjustment.--In the case of any decedent
dying, and gift made, in a calendar year after 2003, the $10,000,000
amount set forth in subsection (c) shall be increased by an amount
equal to--
``(1) $10,000,000, multiplied by
``(2) the cost-of-living adjustment determined under
section 1(f)(3) for such calendar year by substituting
`calendar year 2002' for `calendar year 1992' in subparagraph
(B) thereof.
If any amount as adjusted under the preceding sentence is not a
multiple of $10,000, such amount shall be rounded to the nearest
multiple of $10,000.''
(c) Conforming Amendment.--Subparagraph (A) of section 2057(a)(3)
of such Code is amended by striking ``$625,000'' and inserting ``the
excess of the applicable exclusion amount (determined without regard to
this paragraph) over $675,000''.
(d) Effective Date.--The amendments made by this section shall
apply to estates of decedents dying, and gifts made, after the date of
the enactment of this Act.
SEC. 3. ANNUAL GIFT TAX EXCLUSION INCREASED TO $50,000.
(a) In General.--Subsection (b) of section 2503 of the Internal
Revenue Code of 1986 (relating to exclusion from gifts) is amended by
striking ``$10,000'' each place it appears and inserting ``$50,000''.
(b) Conforming Amendment.--Paragraph (2) of section 2503(b) of such
Code is amended--
(1) by striking ``1998'' and inserting ``2003'', and
(2) by striking ``1997'' and inserting ``2002''.
(c) Effective Date.--The amendments made by this section shall
apply to gifts made after December 31, 2002.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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