To amend the Internal Revenue Code of 1986 to increase the exclusion equivalent of the unified credit allowed against the estate tax to $7,500,000 and to establish a flat estate tax rate.

Amends the Internal Revenue Code to: (1) increase the estate tax exclusion to $7.5 million; and (2) establish a single estate tax rate of 27.5 percent.

Repeals certain provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) relating to estate, gift, and generation-skpping transfer taxes.

[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1560 Introduced in House (IH)]






109th CONGRESS
  1st Session
                                H. R. 1560

 To amend the Internal Revenue Code of 1986 to increase the exclusion 
  equivalent of the unified credit allowed against the estate tax to 
          $7,500,000 and to establish a flat estate tax rate.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 12, 2005

   Mr. Ford 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 increase the exclusion 
  equivalent of the unified credit allowed against the estate tax to 
          $7,500,000 and to establish a flat estate tax rate.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. INCREASE IN EXCLUSION EQUIVALENT OF UNIFIED CREDIT TO 
              $7,500,000.

    (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 ``the applicable exclusion amount'' and 
inserting ``. For purposes of the preceding sentence, the applicable 
exclusion amount is $7,500,000.''.
    (b) Modification of Estate Tax Rate Schedule.--Subsection (c) of 
section 2001 of such Code (relating to rate schedule) is amended to 
read as follows:
    ``(c) Rate.--The tentative tax on the amount with respect to which 
the tentative tax is to be computed is 27.5 percent of such amount.''.
    (c) Repeal of Certain Estate and Gift Tax Provisions Made by 
EGTRRA.--
            (1) Subtitles A and E of title V, and subsections (d), (e), 
        and (f)(3) of section 511, of the Economic Growth and Tax 
        Relief Reconciliation Act of 2001, and the amendments made by 
        such provisions, are hereby repealed. The Internal Revenue Code 
        of 1986 shall be applied and administered as if such 
        provisions, and amendments, had never been enacted.
            (2) Section 901 of the Economic Growth and Tax Relief 
        Reconciliation Act of 2001 shall not apply to title V of such 
        Act.
    (d) Effective Date.--The amendments made by this section shall 
apply to estates of decedents dying, and gifts made, after December 31, 
2005.
                                 <all>