,i  #aacth ,,congress  #b;d ,session    
,h4 ,r4 #ehgb  ,,in ,,the ,,house ,,of  
,,representatives  ,december #aa1 #bjad 
,mr4 ,harris introduced the following   
bill2 which was referred to the         
,committee on ,ways and ,means  ,a      
,,bill  ,to amend the ,internal ,revenue
 ,code of #aihf to allow an annual      
elective surcharge in lieu of estate    
tax1 and for other purposes4  #a4 ,short
 title2 table of contents  7a7 ,short   
title ,this ,act may be cited as the    
,american ,solution for ,simplifying the
 ,estate ,tax ,act of #bjad4  7b7 ,table
 of contents ,the table of contents for 
this ,act is as follows3  ,sec4 #a4     
,short title2 table of contents4 ,sec4  
#b4 ,congressional findings4 ,sec4 #c4  
,elective simplified estate tax4 ,sec4  
#d4 ,carry-over basis4 ,sec4 #e4        
,returns4 ,sec4 #f4 ,special rule for   
revocation of trusts in connection with 
election4  #b4 ,congressional findings  
,congress finds the following3  7#a7    
,the current method of collecting       

,federal estate tax often cripples      
,american family owned businesses1      
farms1 and ranches by forcing the sale  
of ongoing concerns in order to pay tax 
liability arising from the death of an  
owner1 creating inefficiencies1         
dislocation1 and often job losses4  7#b7
 ,from farmers and ranchers to urban    
business owners1 the ,federal estate tax
 looms heavily and has a                
counterproductive effect on our         
,nation's family owned businesses that  
costs numerous jobs4  7#c7 ,the job     
losses1 economic dislocation1 and       
excessive compliance costs are not      
justified given the fact that the estate
 tax has averaged one percent of total  
,,irs collections since #aifj1 with #ad 
billion collected in ,fiscal ,year #bjac
 7less than  percent of total ,,irs     
collections74  7#d7 ,the ,joint         
,economic ,committee in its ,may #bjjf  
study concluded that in order to avoid  
wealth transfer taxes1 individuals'     
costs of complying with the estate tax  

roughly equals the revenue yield of the 
estate tax for the ,u4,s4 ,treasury4    
7#e7 ,the current method of collection  
of the estate tax leads many wealthy    
,americans to lock up capital in trusts 
to minimize or eliminate tax liability1 
meaning that billions of dollars are    
left idle instead of facilitating the   
creation of new business ventures that  
could stimulate the economy4  7#f7 ,as  
recently as #bjji1 of the #cd1jjj estate
 tax returns filed that year1 only half 
owed any estate tax1 indicating that    
many wealthy ,americans have found means
 to avoid paying this tax4 ,in #bjab1   
#i1djj ,americans still had to file     
estate tax returns1 even with the higher
 #e million threshold4  7#g7 ,it is in  
the national interest to modify the     
mechanism for collection of revenues    
from those ,americans who have the      
largest estates1 provided that it is    
done in a revenue neutral manner that   
ensures the ongoing collection of an    
appropriate percentage of the historical

 average of #a percent of total ,,irs   
tax receipts that reflects the lower    
amount of estate tax revenues generated 
under the #bjaj and #bjab amendments due
 to a higher exemption amount4  #c4     
,elective simplified estate tax  7a7 ,in
 general ,chapter #aa of the ,internal  
,revenue ,code of #aihf is amended by   
adding at the end the following new     
subchapter3  ,d ,simplified ,estate ,tax
  ,sec4 #bcja4 ,simplified estate tax4  
,sec4 #bcjb4 ,imposition and rate4 ,sec4
 #bcjc4 ,election4 ,sec4 #bcjd4 ,seven  
taxable year minimum4  #bcja4           
,simplified estate tax ,in the case of  
an individual 7and1 if married1 such    
individual's spouse7 who elects the     
application of this subchapter--  7#a7  
chapter #aa shall thereafter not apply  
with respect to the transfer of the     
estate of such individual 7or such      
spouse71  7#b7 chapter #ac shall        
thereafter not apply with respect to any
 generation-skipping transfer 7as       
defined in section #bfaa7 made by such  

individual 7or such spouse71 and  7#c7 a
 tax shall be imposed by section #bcjb  
with respect to such individual 7and    
such spouse7 for the taxable year of the
 election and each taxable year         
thereafter4  #bcjb4 ,imposition and rate
  7a7 ,in general ,the tax imposed by   
this section for any taxable year shall 
be treated as an increase in the        
taxpayer's tax under chapter #a for the 
taxable year by an amount equal to #a   
percent of the modified adjusted gross  
income of the taxpayer for the taxable  
year4  7b7 ,modified adjusted gross     
income ,for purposes of this section1   
the term modified adjusted gross income 
means adjusted gross income increased   
by--  7#a7 any amount excluded from     
gross income under section #iaa1 #ica1  
or #icc1 or  7#b7 any amount of interest
 received or accrued by the taxpayer    
during the taxable year which is exempt 
from tax4  #bcjc4 ,election  7a7 ,in    
general ,except as the ,secretary shall 
by regulation prescribe in the case of  

separation1 divorce1 remarriage1 or     
other circumstances the ,secretary      
determines equitable1 election for this 
subchapter to apply1 once made1 shall be
 irrevocable4  7b7 ,married ,couples ,to
 ,file ,jointly ,if the taxpayer and the
 taxpayer's spouse elect the application
 of this subchapter and are married     
7within the meaning of section #ggjc7 at
 the end of the taxable year1 the       
taxpayer and the taxpayer's spouse shall
 file a joint return for the taxable    
year4  #bcjd4 ,seven taxable year       
minimum  7a7 ,in general ,in the case of
 a decedent whose last taxable year is  
not at least the #gth taxable year for  
which the tax under section #bcjb is    
imposed1 the application of this        
subchapter shall be treated as not      
having been elected4  7b7 ,transition   
rule for #bjae and #bjaf  7#a7 ,in      
general ,in the case of a decedent who  
first elected the application of this   
subchapter during #bjae or #bjaf1       
subsection 7a7 shall not apply if the   

executor of the decedent's estate elects
 to increase the amount of the tax      
imposed under chapter #a for the        
decedent's last taxable year by an      
amount equal to--  7,a7 the highest     
amount of tax imposed by section #bcjb  
with respect to such decedent for any   
taxable year 7including the decedent's  
last taxable year71 multiplied by  7,b7 
an amount equal to the difference of--  
7i7 #g1 over  7ii7 the number of taxable
 years for which such tax was imposed   
with respect to such decedent 7including
 the decedent's last taxable year74     
7#b7 ,special rule for decedent dying   
during year of election ,in the case of 
a decedent to whom paragraph 7#a7       
applies and who first elected the       
application of this subchapter with     
respect to the last taxable year of the 
decedent1 the amount under subparagraph 
7,a7 shall not be less than the amount  
of tax which would have been imposed by 
section #bcjb had such election first   
been elected with respect to the        

preceding taxable year4  7c7 ,credit for
 taxes paid  7#a7 ,in general ,in the   
case of a decedent to which subsection  
7a7 applies1 the ,secretary shall by    
regulation provide for allowing for a   
credit against the tax imposed by       
chapter #aa with respect to the decedent
 to account for any taxes paid by the   
decedent under section #bcjb4  7#b7     
,interest ,the amount of any credit     
determined under paragraph 7#a7 with    
respect to any tax paid shall include   
interest1 which shall be determined--   
7,a7 at the overpayment rate established
 under section #ffba1 and  7,b7 from the
 date of payment of such tax to the due 
date of the amount against which the    
credit is allowed4  4  7b7 ,effective   
date ,the amendments made by this       
section shall apply to taxable years    
beginning after1 and estates of         
decedents dying after1 ,december #ca1   
#bjad4  #d4 ,carry-over basis  7a7 ,in  
general ,part ,,ii of subchapter ,o of  
chapter #a of such ,code is amended by  

inserting after section #ajba the       
following new section3  #ajbb4          
,treatment of property acquired from a  
decedent who elected simplified estate  
tax treatment  7a7 ,in general ,in the  
case of property acquired from a        
decedent who elected the application of 
subchapter ,d of chapter #aa--  7#a7    
such property shall be treated for      
purposes of this subtitle as transferred
 by gift1 and  7#b7 the basis of the    
person acquiring property from such a   
decedent shall be the lesser of--  7,a7 
the adjusted basis of the decedent1 or  
7,b7 the fair market value of the       
property at the date of the decedent's  
death4  7b7 ,property acquired from the 
decedent ,for purposes of this section1 
the following property shall be         
considered to have been acquired from   
the decedent3  7#a7 ,property acquired  
by bequest1 devise1 or inheritance1 or  
by the decedent's estate from the       
decedent4  7#b7 ,property transferred by
 the decedent during his lifetime--     

7,a7 to a qualified revocable trust 7as 
defined in section #fde7;b77#a771 or    
7,b7 to any other trust with respect to 
which the decedent reserved the right to
 make any change in the enjoyment       
thereof through the exercise of a power 
to alter1 amend1 or terminate the trust4
  7#c7 ,any other property passing from 
the decedent by reason of death to the  
extent that such property passed without
 consideration4  4  7b7 ,effective date 
,the amendments made by this section    
shall apply with respect to estates of  
decedents dying after ,december #ca1    
#bjad4  #e4 ,simplified estate tax      
returns  7a7 ,information returns  7#a7 
,in general ,subpart ,c of part ,,ii of 
subchapter ,a of chapter #fa of such    
,code is amended by inserting after     
section #fjah the following new section3
  #fjah;,a4 ,simplified estate tax      
returns  7a7 ,in general ,in the case of
 property acquired from a decedent who  
has in effect an election under         
subchapter ,d of chapter #aa1 the       

executor of the estate of such decedent 
shall make a return containing the      
following information with respect to   
such property3  7#a7 ,the name and ,,tin
 of the recipient of such property4     
7#b7 ,an accurate description of such   
property4  7#c7 ,the adjusted basis of  
such property in the hands of the       
decedent and its fair market value at   
the time of death4  7#d7 ,the decedent's
 holding period for such property4  7#e7
 ,sufficient information to determine   
whether any gain on the disposition of  
the property would be treated as        
ordinary income4  7b7 ,property acquired
 from decedent --,for purposes of this  
section1 section #ajbb shall apply for  
purposes of determining the property    
acquired from a decedent4  7c7          
,statements ,to ,be ,furnished to       
,certain ,persons ,every person required
 to make a return under subsection 7a7  
shall furnish to each person whose name 
is required to be set forth in such     
return 7other than the person required  

to make such return7 a written statement
 showing--  7#a7 the name1 address1 and 
phone number of the person required to  
make such return1 and  7#b7 the         
information specified in subsection 7a7 
with respect to property acquired from1 
or passing from1 the decedent to the    
person required to receive such         
statement4  ,the written statement      
required under the preceding sentence   
shall be furnished not later than #cj   
days after the date that the return     
required by subsection 7a7 is filed4    
7d7 ,annual beneficiary asset status    
return ,each recipient of property with 
respect to whom a statement is required 
to be furnished under subsection 7c7 and
 who owns any such property during the  
taxable year shall make a return with   
respect to such property containing the 
following information3  7#a7 ,an        
accurate description of such property4  
7#b7 ,an accounting of the disposition  
of any such property during the taxable 
year4  7#c7 ,the adjusted basis of such 

property as of the later of the end of  
the taxable year or the date of any such
 disposition4  7e7 ,excepted property   
7#a7 ,in general ,subsections 7a7 and   
7b7 shall not apply with respect to--   
7,a7 any property the fair market value 
of which1 at the time of the decedent's 
death1 does not exceed #aj1jjj1 and     
7,b7 any property the basis of which was
 determined by reference to the fair    
market value of the property at the date
 of the decedent's death4  7#b7         
,inflation adjustment  7,a7 ,in general 
,in the case of any calendar year after 
#bjae1 the #aj1jjj amount under         
paragraph 7#a7 shall be increased by an 
amount equal to--  7i7 such dollar      
amount1 multiplied by  7ii7 the         
cost-of-living adjustment determined    
under section #a7;f77#c7 for the        
calendar year1 determined by            
substituting calendar year #bjad for    
calendar year #aiib in subparagraph 7,b7
 thereof4  7,b7 ,rounding ,if any amount
 as adjusted under subparagraph 7,a7 is 

not a multiple of #ajj1 such amount     
shall be rounded to the next lowest     
multiple of #ajj4  4  7#b7 ,clerical    
amendment ,the table of sections for    
subpart ,c of part ,,ii of subchapter ,a
 of chapter #fa of such ,code is amended
 by inserting after the item relating to
 section #fjah the following new item3  
,sec4 #fjah;,a4 ,simplified estate tax  
returns4  4  7b7 ,time for filing       
returns ,section #fjge7;a7 of such ,code
 is amended--  7#a7 by striking ,estate 
tax return4--,returns made and inserting
 the following3 1  ,estate tax return4--
 7#a7 ,in general ,returns made  1 and  
7#b7 by adding at the end the following 
new paragraph3  7#b7 ,simplified estate 
tax  7,a7 ,in general ,returns made     
under section #fjah;,a7a7 shall be filed
 not later than #ahj days after the date
 of the decedent's death4  7,b7 ,annual 
beneficiary asset status returns        
,returns made under section #fjah;,a7d7 
for a taxable year shall be filed       
concurrently with the individual's      

return of income tax for the taxable    
year4  4  7c7 ,penalty for ,failure ,to 
,file ,returns  7#a7 ,in general ,part  
#a of subchapter ,b of chapter #fh of   
such ,code is amended by adding at the  
end the following new section3          
#fgbj;,d4 ,failure to file information  
with respect to simplified estate tax   
returns  7a7 ,information ,required ,to 
,be ,filed ,with ,secretary ,any person 
required to furnish any information     
under section #fjah;,a7a7 who fails to  
do so on the date prescribed therfor    
7determined with regard to any extension
 of time for filing7 shall pay a penalty
 of #aj1jjj for each such failure4  7b7 
,information ,required ,to ,be          
,furnished to ,beneficiaries ,any person
 required to furnish in writing to each 
person described in section #fjah;,a7c7 
the information required under such     
section who fails to do so shall pay a  
penalty of #bej for each such failure4  
7c7 ,annual information return required 
,to be furnished by beneficiary ,any    

person required to furnish any          
information under section #fjah;,a7d7   
who fails to do so on the date          
prescribed therefor 7determined with    
regard to any extension of time for     
filing7 shall pay a penalty of #e1jjj   
for each such failure4  7d7 ,reasonable 
cause exception ,no penalty shall be    
imposed under subsection 7a71 7b71 or   
7c7 with respect to a failure if it is  
shown that such failure is due to       
reasonable cause4  7e7 ,intentional     
disregard ,if any failure under         
subsection 7a71 7b71 or 7c7 is due to   
intentional disregard of the            
requirements under sections #fjah;,a1   
the penalty under such subsection shall 
be #e percent of the fair market value  
as of the date of death 7in the case of 
section #fjah;,a7d71 as of the date     
prescribed for furnishing such return   
7determined with regard to any extension
 of time for filing77 of the property   
with respect to which the information is
 required4  7f7 ,deficiency ,procedures 

,not ,to ,apply ,subchapter ,b of       
chapter #fc 7relating to deficiency     
procedures for income1 estate1 gift1 and
 certain excise taxes7 shall not apply  
in respect of the assessment or         
collection of any penalty imposed by    
this section4  4  7#b7 ,clerical        
amendment ,the table of sections for    
part #a of subchapter ,b of chapter #fh 
of such ,code is amended by adding at   
the end the following new item3  ,sec4  
#fgbj;,d4 ,failure to file information  
with respect to simplified estate tax   
returns4  4  7d7 ,effective date ,the   
amendments made by this section shall   
apply with respect to estates of        
decedents dying after ,december #ca1    
#bjad4  #f4 ,special rule for revocation
 of trusts in connection with election  
,any revesting in the grantor of title  
to property held in a trust1 whether by 
revocation1 dissolution1 or otherwise1  
shall not be subject to any tax imposed 
by the ,internal ,revenue ,code of #aihf
 if such revesting occurs in #bjae or   

#bjaf and is in connection with the     
grantor's election for subchapter ,d of 
chapter #aa to apply4