S.Amdt. 821

1. Adds SEC. __. INCREASE IN EXCLUSION EQUIVALENT OF UNIFIED CREDIT AGAINST ESTATE TAX; REDUCTION IN ESTATE TAX RATE TO CAPITAL GAINS RATE wherever appropriate

   Adds a section

   Inserted: SEC. __. INCREASE IN EXCLUSION EQUIVALENT OF UNIFIED CREDIT AGAINST ESTATE TAX; REDUCTION IN ESTATE TAX RATE TO CAPITAL GAINS RATE.

   Inserted: (a) Increase in Exclusion Equivalent of Unified Credit.--Subsection (c) of section 2010 of the Internal Revenue Code of 1986 (relating to unified credit against estate tax) is amended to read as follows:

   Inserted: "(c) Applicable Credit Amount.--

   Inserted: "(1) In general.--For purposes of this section, the applicable credit amount is the amount of the tentative tax which would be determined under section 2001(c) if the amount with respect to which such tentative tax is to be computed were the applicable exclusion amount. For purposes of the preceding sentence, the applicable exclusion amount is $10,000,000.

   Inserted: "(2) Inflation adjustment.--In the case of any decedent dying in a calendar year after 2010, the dollar amount in paragraph (1) shall be increased by an amount equal to--

   Inserted: "(A) such dollar amount, multiplied by

   Inserted: "(B) the cost-of-living adjustment determined under section 1(f)(3) for such calendar year by substituting 'calendar year 2009' for 'calendar year 1992' in subparagraph (B) thereof.

   Inserted: 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.".

   Inserted: (b) Estate Tax Flat Rate Equal to Capital Gains Rate.--Subsection (c) of section 2001 of the Internal Revenue Code of 1986 (relating to imposition and rate of tax) is amended to read as follows:

   Inserted: "(c) Rate of Tentative Tax.--In the case of estates of decedents dying, and gifts made, in any calendar year after 2009, the rate of the tentative tax is the rate specified in section 1(h)(1)(C) for such year.".

   Inserted: (c) Effective Date.--The amendments made by this section shall apply to estates of decedents dying, and gifts made, after December 31, 2009.

   Inserted: (d) Modifications to Estate Tax.--

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   Inserted: (1) In general.--Subtitles A and E of title V of the Economic Growth and Tax Relief Reconciliation Act of 2001, and the amendments made by such subtitles, are hereby repealed; and the Internal Revenue Code of 1986 shall be applied as if such subtitles, and amendments, had never been enacted.

   Inserted: (2) Sunset not to apply.--

   Inserted: (A) Subsection (a) of section 901 of the Economic Growth and Tax Relief Reconciliation Act of 2001 is amended by striking "this Act" and all that follows and inserting "this Act (other than title V) shall not apply to taxable, plan, or limitation years beginning after December 31, 2010.".

   Inserted: (B) Subsection (b) of such section 901 is amended by striking ", estates, gifts, and transfers".

   Inserted: (3) Conforming amendment.--Subsection (e) of section 511 of the Economic Growth and Tax Relief Reconciliation Act of 2001, and the amendment made by such subsection, are hereby repealed; and the Internal Revenue Code of 1986 shall be applied as if such subsection and amendment had never been enacted.

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As printed