Estate Tax Relief Act of 2003 - Amends the Internal Revenue Code to: (1) reduce the estate and gift tax rate; (2) increase the unified credit exclusion to $10 million; and (3) repeal the estate tax benefit for family-owned business interests provisions.
[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2502 Introduced in House (IH)]
108th CONGRESS
1st Session
H. R. 2502
To amend the Internal Revenue Code of 1986 to reduce estate and gift
tax rates, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 18, 2003
Mr. Bereuter 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, and for other purposes.
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 ``Estate Tax Relief Act of 2003''.
SEC. 2. REDUCTION OF ESTATE TAX RATES.
(a) 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 subsections:
``(b) Computation of Tax.--The tax imposed by this section shall be
applicable percentage of the amount equal to the excess (if any) of--
``(1) 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 the preceding sentence, the term `applicable
percentage' means the highest rate of tax applicable under section 1
for a taxable year beginning in the calendar year in which the decedent
dies (or, for purposes of section 2502, the gift is made).
``(c) Adjusted Taxable Gifts.--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.''.
(b) Conforming Amendments.--
(1) Section 2010(c) of such Code is amended by striking
``the rate schedule set forth in section 2001(c)'' and
inserting ``section 2001''.
(2) 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) a tax computed under section 2001 on 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.''.
(3) 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--
``(1) the tax computed under section 2001 on the sum of the
taxable gifts for such calendar year, over
``(2) the tax computed under section 2001 on the sum of the
taxable gifts for each of the preceding calendar periods.
``(b) Tax To Be Paid by Donor.--The tax imposed by section 2501
shall be paid by the donor.''.
(4) Section 6601(j)(2)(A)(i) of such Code is amended by
striking ``the rate schedule set forth in section 2001(c)'' and
inserting ``section 2001''.
(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. 3. UNIFIED CREDIT AGAINST ESTATE AND GIFT TAXES INCREASED TO
EXCLUSION EQUIVALENT OF $10,000,000; INFLATION ADJUSTMENT
OF CREDIT.
(a) In General.--Subsection (c) of section 2010 of the Internal
Revenue Code of 1986 (relating to applicable credit amount) is amended
to read as follows:
``(c) Applicable Credit Amount.--For purposes of this section, the
applicable credit amount is the amount of tax which would be determined
under section 2001 if the amount with respect to which such tax is to
be computed were the applicable exclusion amount. For purposes of the
preceding sentence, the applicable exclusion amount is $10,000,000.''.
(b) Inflation Adjustment.--
(1) In general.--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) Inflation 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.''.
(2) Conforming amendment.--Section 6018(a)(1) of such Code
is amended by striking ``section 2010(c)'' and inserting
``section 2010''.
(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. 4. REPEAL OF ESTATE TAX BENEFIT FOR FAMILY-OWNED BUSINESS
INTERESTS.
(a) In General.--Section 2057 of the Internal Revenue Code of 1986
(relating to family-owned business interests) is hereby repealed.
(b) Conforming Amendments.--
(1) Paragraph (10) of section 2031(c) of such Code is
amended by inserting ``(as in effect on the day before the date
of the enactment of the Estate Tax Relief Act of 2001)'' before
the period.
(2) The table of sections for part IV of subchapter A of
chapter 11 of such Code is amended by striking the item
relating to section 2057.
(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.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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