,i  #aac? ,,congress  #b;d ,session  ,h4
 ,r4 #ehgb  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,decemb] #aa1 #bjad   
,mr4 ,h>ris introduc$ ! foll[+ bill2 :i*
 0 ref]r$ to ! ,committee on ,ways &    
,means  ,a ,,bill  ,to am5d ! ,int]nal  
,rev5ue ,code ( #aihf to all[ an annual 
elective sur*>ge 9 lieu ( e/ate tax1 & =
 o!r purposes4  #a4 ,%ort title2 table (
 cont5ts  7a7 ,%ort title ,?is ,act may 
be cit$ z ! ,am]ican ,solution =        
,simplify+ ! ,e/ate ,tax ,act ( #bjad4  
7b7 ,table ( cont5ts ,! table ( cont5ts 
= ?is ,act is z foll[s3  ,sec4 #a4 ,%ort
 title2 table ( cont5ts4 ,sec4 #b4      
,congressional f9d+s4 ,sec4 #c4         
,elective simplifi$ e/ate tax4 ,sec4 #d4
 ,c>ry-ov] basis4 ,sec4 #e4 ,returns4   
,sec4 #f4 ,special rule = revocation (  
tru/s 9 connection ) election4  #b4     
,congressional f9d+s ,congress f9ds !   
foll[+3  7#a7 ,! curr5t me?od ( collect+
 ,f$]al e/ate tax (t5 cripples ,am]ican 
family own$ bus9esses1 f>ms1 & ran*es by
 =c+ ! sale ( ongo+ conc]ns 9 ord] to   

pay tax liability aris+ f ! dea? ( an   
own]1 creat+ ineffici5cies1 dislocation1
 & (t5 job losses4  7#b7 ,f f>m]s &     
ran*]s to urban bus9ess own]s1 ! ,f$]al 
e/ate tax looms heavily & has a         
c\nt]productive effect on our ,nation's 
family own$ bus9esses t co/s num]\s     
jobs4  7#c7 ,! job losses1 economic     
dislocation1 & excessive compliance co/s
 are n ju/ifi$ giv5 ! fact t ! e/ate tax
 has av]ag$ "o p]c5t ( total ,,irs      
collections s9ce #aifj1 ) #ad billion   
collect$ 9 ,fiscal ,ye> #bjac 7less ?an 
p]c5t ( total ,,irs collections74  7#d7 
,! ,jo9t ,economic ,committee 9 its ,may
 #bjjf /udy conclud$ t 9 ord] to avoid  
weal? transf] taxes1 individuals' co/s (
 comply+ ) ! e/ate tax r\ghly equals !  
rev5ue yield ( ! e/ate tax = ! ,u4,s4   
,treasury4  7#e7 ,! curr5t me?od (      
collection ( ! e/ate tax leads _m weal?y
 ,am]icans to lock up capital 9 tru/s to
 m9imize or elim9ate tax liability1     
mean+ t billions ( doll>s are left idle 
in/ead ( facilitat+ ! creation ( new    

bus9ess v5tures t c\ld /imulate !       
economy4  7#f7 ,z rec5tly z #bjji1 ( !  
#cd1jjj e/ate tax returns fil$ t ye>1   
only half ow$ any e/ate tax1 indicat+ t 
_m weal?y ,am]icans h f\nd means to     
avoid pay+ ?is tax4 ,9 #bjab1 #i1djj    
,am]icans /ill _h to file e/ate tax     
returns1 ev5 ) ! high] #e million       
?re%old4  7#g7 ,x is 9 ! national int]e/
 to modify ! me*anism = collection (    
rev5ues f ^? ,am]icans :o h ! l>ge/     
e/ates1 provid$ t x is done 9 a rev5ue  
neutral mann] t ensures ! ongo+         
collection ( an appropriate p]c5tage ( !
 hi/orical av]age ( #a p]c5t ( total    
,,irs tax receipts t reflects ! l[]     
am\nt ( e/ate tax rev5ues g5]at$ "u !   
#bjaj & #bjab am5dm5ts due to a high]   
exemption am\nt4  #c4 ,elective         
simplifi$ e/ate tax  7a7 ,9 g5]al ,*apt]
 #aa ( ! ,int]nal ,rev5ue ,code ( #aihf 
is am5d$ by add+ at ! end ! foll[+ new  
sub*apt]3  ,d ,simplifi$ ,e/ate ,tax    
,sec4 #bcja4 ,simplifi$ e/ate tax4 ,sec4
 #bcjb4 ,imposition & rate4 ,sec4 #bcjc4

 ,election4 ,sec4 #bcjd4 ,sev5 taxable  
ye> m9imum4  #bcja4 ,simplifi$ e/ate tax
 ,9 ! case ( an individual 7&1 if m>ri$1
 su* individual's sp\se7 :o elects !    
application ( ?is sub*apt]--  7#a7 *apt]
 #aa %all !reaft] n apply ) respect to !
 transf] ( ! e/ate ( su* individual 7or 
su* sp\se71  7#b7 *apt] #ac %all !reaft]
 n apply ) respect to any               
g5]ation-skipp+ transf] 7z def9$ 9      
section #bfaa7 made by su* individual   
7or su* sp\se71 &  7#c7 a tax %all be   
impos$ by section #bcjb ) respect to su*
 individual 7& su* sp\se7 = ! taxable   
ye> ( ! election & ea* taxable ye>      
!reaft]4  #bcjb4 ,imposition & rate  7a7
 ,9 g5]al ,! tax impos$ by ?is section =
 any taxable ye> %all be treat$ z an    
increase 9 ! taxpay]'s tax "u *apt] #a =
 ! taxable ye> by an am\nt equal to #a  
p]c5t ( ! modifi$ adju/$ gross income ( 
! taxpay] = ! taxable ye>4  7b7 ,modifi$
 adju/$ gross income ,= purposes ( ?is  
section1 ! t]m modifi$ adju/$ gross     
income means adju/$ gross income        

increas$ by--  7#a7 any am\nt exclud$ f 
gross income "u section #iaa1 #ica1 or  
#icc1 or  7#b7 any am\nt ( int]e/       
receiv$ or accru$ by ! taxpay] dur+ !   
taxable ye> :i* is exempt f tax4  #bcjc4
 ,election  7a7 ,9 g5]al ,except z !    
,secret>y %all by regulation prescribe 9
 ! case ( sep>ation1 divorce1 rem>riage1
 or o!r circum/ances ! ,secret>y        
det]m9es equitable1 election = ?is      
sub*apt] to apply1 once made1 %all be   
irrevocable4  7b7 ,m>ri$ ,c\ples ,to    
,file ,jo9tly ,if ! taxpay] & !         
taxpay]'s sp\se elect ! application (   
?is sub*apt] & are m>ri$ 7)9 ! mean+ (  
section #ggjc7 at ! end ( ! taxable ye>1
 ! taxpay] & ! taxpay]'s sp\se %all file
 a jo9t return = ! taxable ye>4  #bcjd4 
,sev5 taxable ye> m9imum  7a7 ,9 g5]al  
,9 ! case ( a dec$5t ^: la/ taxable ye> 
is n at lea/ ! #g? taxable ye> = :i* !  
tax "u section #bcjb is impos$1 !       
application ( ?is sub*apt] %all be      
treat$ z n hav+ be5 elect$4  7b7        
,transition rule = #bjae & #bjaf  7#a7  

,9 g5]al ,9 ! case ( a dec$5t :o fir/   
elect$ ! application ( ?is sub*apt] dur+
 #bjae or #bjaf1 subsection 7a7 %all n  
apply if ! executor ( ! dec$5t's e/ate  
elects to increase ! am\nt ( ! tax      
impos$ "u *apt] #a = ! dec$5t's la/     
taxable ye> by an am\nt equal to--  7,a7
 ! highe/ am\nt ( tax impos$ by section 
#bcjb ) respect to su* dec$5t = any     
taxable ye> 7includ+ ! dec$5t's la/     
taxable ye>71 multipli$ by  7,b7 an     
am\nt equal to ! diff]5ce (--  7i7 #g1  
ov]  7ii7 ! numb] ( taxable ye>s = :i*  
su* tax 0 impos$ ) respect to su* dec$5t
 7includ+ ! dec$5t's la/ taxable ye>74  
7#b7 ,special rule = dec$5t dy+ dur+ ye>
 ( election ,9 ! case ( a dec$5t to :om 
p>agraph 7#a7 applies & :o fir/ elect$ !
 application ( ?is sub*apt] ) respect to
 ! la/ taxable ye> ( ! dec$5t1 ! am\nt  
"u subp>agraph 7,a7 %all n be less ?an !
 am\nt ( tax :i* w\ld h be5 impos$ by   
section #bcjb _h su* election fir/ be5  
elect$ ) respect to ! prec$+ taxable    
ye>4  7c7 ,cr$it = taxes paid  7#a7 ,9  

g5]al ,9 ! case ( a dec$5t to :i*       
subsection 7a7 applies1 ! ,secret>y %all
 by regulation provide = all[+ = a cr$it
 aga9/ ! tax impos$ by *apt] #aa )      
respect to ! dec$5t to acc\nt = any     
taxes paid by ! dec$5t "u section #bcjb4
  7#b7 ,int]e/ ,! am\nt ( any cr$it     
det]m9$ "u p>agraph 7#a7 ) respect to   
any tax paid %all include int]e/1 :i*   
%all be det]m9$--  7,a7 at ! ov]paym5t  
rate e/abli%$ "u section #ffba1 &  7,b7 
f ! date ( paym5t ( su* tax to ! due    
date ( ! am\nt aga9/ :i* ! cr$it is     
all[$4  4  7b7 ,effective date ,!       
am5dm5ts made by ?is section %all apply 
to taxable ye>s beg9n+ aft]1 & e/ates ( 
dec$5ts dy+ aft]1 ,decemb] #ca1 #bjad4  
#d4 ,c>ry-ov] basis  7a7 ,9 g5]al ,"p   
,,ii ( sub*apt] ,o ( *apt] #a ( su*     
,code is am5d$ by ins]t+ aft] section   
#ajba ! foll[+ new section3  #ajbb4     
,treatm5t ( prop]ty acquir$ f a dec$5t  
:o elect$ simplifi$ e/ate tax treatm5t  
7a7 ,9 g5]al ,9 ! case ( prop]ty acquir$
 f a dec$5t :o elect$ ! application (   

sub*apt] ,d ( *apt] #aa--  7#a7 su*     
prop]ty %all be treat$ = purposes ( ?is 
subtitle z transf]r$ by gift1 &  7#b7 ! 
basis ( ! p]son acquir+ prop]ty f su* a 
dec$5t %all be ! less] (--  7,a7 !      
adju/$ basis ( ! dec$5t1 or  7,b7 ! fair
 m>ket value ( ! prop]ty at ! date ( !  
dec$5t's dea?4  7b7 ,prop]ty acquir$ f !
 dec$5t ,= purposes ( ?is section1 !    
foll[+ prop]ty %all be consid]$ to h be5
 acquir$ f ! dec$5t3  7#a7 ,prop]ty     
acquir$ by beque/1 devise1 or           
inh]itance1 or by ! dec$5t's e/ate f !  
dec$5t4  7#b7 ,prop]ty transf]r$ by !   
dec$5t dur+ 8 lifetime--  7,a7 to a     
qualifi$ revocable tru/ 7z def9$ 9      
section #fde7;b77#a771 or  7,b7 to any  
o!r tru/ ) respect to :i* ! dec$5t      
res]v$ ! "r to make any *ange 9 !       
enjoym5t !re( ?r\gh ! ex]cise ( a p[] to
 alt]1 am5d1 or t]m9ate ! tru/4  7#c7   
,any o!r prop]ty pass+ f ! dec$5t by    
reason ( dea? to ! ext5t t su* prop]ty  
pass$ )\t consid]ation4  4  7b7         
,effective date ,! am5dm5ts made by ?is 

section %all apply ) respect to e/ates (
 dec$5ts dy+ aft] ,decemb] #ca1 #bjad4  
#e4 ,simplifi$ e/ate tax returns  7a7   
,in=mation returns  7#a7 ,9 g5]al       
,subp>t ,c ( "p ,,ii ( sub*apt] ,a (    
*apt] #fa ( su* ,code is am5d$ by ins]t+
 aft] section #fjah ! foll[+ new        
section3  #fjah;,a4 ,simplifi$ e/ate tax
 returns  7a7 ,9 g5]al ,9 ! case (      
prop]ty acquir$ f a dec$5t :o has 9     
effect an election "u sub*apt] ,d (     
*apt] #aa1 ! executor ( ! e/ate ( su*   
dec$5t %all make a return conta9+ !     
foll[+ in=mation ) respect to su*       
prop]ty3  7#a7 ,! "n & ,,t9 ( ! recipi5t
 ( su* prop]ty4  7#b7 ,an accurate      
description ( su* prop]ty4  7#c7 ,!     
adju/$ basis ( su* prop]ty 9 ! h&s ( !  
dec$5t & its fair m>ket value at ! "t ( 
dea?4  7#d7 ,! dec$5t's hold+ p]iod =   
su* prop]ty4  7#e7 ,suffici5t in=mation 
to det]m9e :e!r any ga9 on ! disposition
 ( ! prop]ty w\ld be treat$ z ord9>y    
income4  7b7 ,prop]ty acquir$ f dec$5t  
--,= purposes ( ?is section1 section    

#ajbb %all apply = purposes ( det]m9+ ! 
prop]ty acquir$ f a dec$5t4  7c7        
,/atem5ts ,to ,be ,furni%$ to ,c]ta9    
,p]sons ,e p]son requir$ to make a      
return "u subsection 7a7 %all furni% to 
ea* p]son ^: "n is requir$ to be set =? 
9 su* return 7o!r ?an ! p]son requir$ to
 make su* return7 a writt5 /atem5t %[+--
  7#a7 ! "n1 address1 & phone numb] ( ! 
p]son requir$ to make su* return1 &     
7#b7 ! in=mation specifi$ 9 subsection  
7a7 ) respect to prop]ty acquir$ f1 or  
pass+ f1 ! dec$5t to ! p]son requir$ to 
receive su* /atem5t4  ,! writt5 /atem5t 
requir$ "u ! prec$+ s5t5ce %all be      
furni%$ n lat] ?an #cj days aft] ! date 
t ! return requir$ by subsection 7a7 is 
fil$4  7d7 ,annual b5efici>y asset /atus
 return ,ea* recipi5t ( prop]ty )       
respect to :om a /atem5t is requir$ to  
be furni%$ "u subsection 7c7 & :o owns  
any su* prop]ty dur+ ! taxable ye> %all 
make a return ) respect to su* prop]ty  
conta9+ ! foll[+ in=mation3  7#a7 ,an   
accurate description ( su* prop]ty4     

7#b7 ,an acc\nt+ ( ! disposition ( any  
su* prop]ty dur+ ! taxable ye>4  7#c7 ,!
 adju/$ basis ( su* prop]ty z ( ! lat] (
 ! end ( ! taxable ye> or ! date ( any  
su* disposition4  7e7 ,except$ prop]ty  
7#a7 ,9 g5]al ,subsections 7a7 & 7b7    
%all n apply ) respect to--  7,a7 any   
prop]ty ! fair m>ket value ( :i*1 at !  
"t ( ! dec$5t's dea?1 does n exce$      
#aj1jjj1 &  7,b7 any prop]ty ! basis (  
:i* 0 det]m9$ by ref]5ce to ! fair m>ket
 value ( ! prop]ty at ! date ( !        
dec$5t's dea?4  7#b7 ,inflation adju/m5t
  7,a7 ,9 g5]al ,9 ! case ( any cal5d>  
ye> aft] #bjae1 ! #aj1jjj am\nt "u      
p>agraph 7#a7 %all be increas$ by an    
am\nt equal to--  7i7 su* doll> am\nt1  
multipli$ by  7ii7 ! co/-(-liv+ adju/m5t
 det]m9$ "u section #a7;f77#c7 = !      
cal5d> ye>1 det]m9$ by sub/itut+ cal5d> 
ye> #bjad = cal5d> ye> #aiib 9          
subp>agraph 7,b7 !re(4  7,b7 ,r\nd+ ,if 
any am\nt z adju/$ "u subp>agraph 7,a7  
is n a multiple ( #ajj1 su* am\nt %all  
be r\nd$ to ! next l[e/ multiple ( #ajj4

  4  7#b7 ,cl]ical am5dm5t ,! table (   
sections = subp>t ,c ( "p ,,ii (        
sub*apt] ,a ( *apt] #fa ( su* ,code is  
am5d$ by ins]t+ aft] ! item relat+ to   
section #fjah ! foll[+ new item3  ,sec4 
#fjah;,a4 ,simplifi$ e/ate tax returns4 
4  7b7 ,"t = fil+ returns ,section      
#fjge7;a7 ( su* ,code is am5d$--  7#a7  
by /rik+ ,e/ate tax return4--,returns   
made & ins]t+ ! foll[+3 1  ,e/ate tax   
return4-- 7#a7 ,9 g5]al ,returns made  1
 &  7#b7 by add+ at ! end ! foll[+ new  
p>agraph3  7#b7 ,simplifi$ e/ate tax    
7,a7 ,9 g5]al ,returns made "u section  
#fjah;,a7a7 %all be fil$ n lat] ?an #ahj
 days aft] ! date ( ! dec$5t's dea?4    
7,b7 ,annual b5efici>y asset /atus      
returns ,returns made "u section        
#fjah;,a7d7 = a taxable ye> %all be fil$
 concurr5tly ) ! individual's return (  
income tax = ! taxable ye>4  4  7c7     
,p5alty = ,failure ,to ,file ,returns   
7#a7 ,9 g5]al ,"p #a ( sub*apt] ,b (    
*apt] #fh ( su* ,code is am5d$ by add+  
at ! end ! foll[+ new section3          

#fgbj;,d4 ,failure to file in=mation )  
respect to simplifi$ e/ate tax returns  
7a7 ,in=mation ,requir$ ,to ,be ,fil$ ,)
 ,secret>y ,any p]son requir$ to furni% 
any in=mation "u section #fjah;,a7a7 :o 
fails to d s on ! date prescrib$ !r=    
7det]m9$ ) reg>d to any ext5sion ( "t = 
fil+7 %all pay a p5alty ( #aj1jjj = ea* 
su* failure4  7b7 ,in=mation ,requir$   
,to ,be ,furni%$ to ,b5efici>ies ,any   
p]son requir$ to furni% 9 writ+ to ea*  
p]son describ$ 9 section #fjah;,a7c7 !  
in=mation requir$ "u su* section :o     
fails to d s %all pay a p5alty ( #bej = 
ea* su* failure4  7c7 ,annual in=mation 
return requir$ ,to be furni%$ by        
b5efici>y ,any p]son requir$ to furni%  
any in=mation "u section #fjah;,a7d7 :o 
fails to d s on ! date prescrib$ !re=   
7det]m9$ ) reg>d to any ext5sion ( "t = 
fil+7 %all pay a p5alty ( #e1jjj = ea*  
su* failure4  7d7 ,reasonable cause     
exception ,no p5alty %all be impos$ "u  
subsection 7a71 7b71 or 7c7 ) respect to
 a failure if x is %[n t su* failure is 

due to reasonable cause4  7e7           
,int5tional disreg>d ,if any failure "u 
subsection 7a71 7b71 or 7c7 is due to   
int5tional disreg>d ( ! requirem5ts "u  
sections #fjah;,a1 ! p5alty "u su*      
subsection %all be #e p]c5t ( ! fair    
m>ket value z ( ! date ( dea? 79 ! case 
( section #fjah;,a7d71 z ( ! date       
prescrib$ = furni%+ su* return 7det]m9$ 
) reg>d to any ext5sion ( "t = fil+77 ( 
! prop]ty ) respect to :i* ! in=mation  
is requir$4  7f7 ,defici5cy ,proc$ures  
,n ,to ,apply ,sub*apt] ,b ( *apt] #fc  
7relat+ to defici5cy proc$ures = income1
 e/ate1 gift1 & c]ta9 excise taxes7 %all
 n apply 9 respect ( ! assessm5t or     
collection ( any p5alty impos$ by ?is   
section4  4  7#b7 ,cl]ical am5dm5t ,!   
table ( sections = "p #a ( sub*apt] ,b (
 *apt] #fh ( su* ,code is am5d$ by add+ 
at ! end ! foll[+ new item3  ,sec4      
#fgbj;,d4 ,failure to file in=mation )  
respect to simplifi$ e/ate tax returns4 
4  7d7 ,effective date ,! am5dm5ts made 
by ?is section %all apply ) respect to  

e/ates ( dec$5ts dy+ aft] ,decemb] #ca1 
#bjad4  #f4 ,special rule = revocation (
 tru/s 9 connection ) election ,any     
reve/+ 9 ! grantor ( title to prop]ty   
held 9 a tru/1 :e!r by revocation1      
dissolution1 or o!rwise1 %all n be      
subject to any tax impos$ by ! ,int]nal 
,rev5ue ,code ( #aihf if su* reve/+     
occurs 9 #bjae or #bjaf & is 9          
connection ) ! grantor's election =     
sub*apt] ,d ( *apt] #aa to apply4