H.R. 1285 (107th): Estate Tax Reduction and Simplification Act of 2001

107th Congress, 2001–2002. Text as of Mar 28, 2001 (Introduced).

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HR 1285 IH

107th CONGRESS

1st Session

H. R. 1285

To amend the Internal Revenue Code of 1986 to reduce and simplify the estate tax.

IN THE HOUSE OF REPRESENTATIVES

March 28, 2001

Mr. MOORE (for himself and Mr. HOLDEN) 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 and simplify the estate tax.

    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 Reduction and Simplification Act of 2001’.

SEC. 2. INCREASE IN UNIFIED CREDIT AGAINST ESTATE AND GIFT TAXES TO EXCLUSION EQUIVALENT OF $3,000,000 WHILE PRESERVING STEPUP IN BASIS; INFLATION ADJUSTMENT OF CREDIT.

    (a) IN GENERAL- The table in section 2010(c) of the Internal Revenue Code (relating to applicable credit amount) is amended--

      (1) by striking ‘2000 and 2001’ and inserting ‘2000 or thereafter’,

      (2) by striking ‘$675,000’ and inserting ‘$3,000,000’, and

      (3) by striking all matter beginning with the item relating to 2002 and 2003 through the end of the table.

    (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 2001, the $3,000,000 amount set forth in subsection (c) shall be increased by an amount equal to--

      ‘(1) $3,000,000, multiplied by

      ‘(2) the cost-of-living adjustment determined under section 1(f)(3) for such calendar year by substituting ‘calendar year 2000’ 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- Section 6018(a)(1) of such Code is amended by striking ‘section 2010(c)’ and inserting ‘section 2010’.

SEC. 3. SIMPLICATION OF ESTATE TAX EXCLUSION FOR FAMILY-OWNED BUSINESSES AND FARMS.

    (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.

SEC. 4. EFFECTIVE DATE.

    The amendments made by this Act shall apply to the estates of decedents dying, and gifts made, after December 31, 2001.