S. 3626Senate109th Congress (2005-2007)In Committee

Estate Tax Relief and Reform Act of 2006

Introduced June 29, 2006

Legislative Activity

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2 earlier actions
SenateIntro Referral Latest Action

Read twice and referred to the Committee on Finance.

June 29, 2006

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SenateIntro Referral

Introduced in Senate

June 29, 2006

SenateIntro Referral

Sponsor introductory remarks on measure. (CR S6806-6807)

June 29, 2006

SenateIntro Referral

Read twice and referred to the Committee on Finance.

June 29, 2006

Floor Debate

20 members

What members said about S. 3626 on the floor

10 Republicans10 Democrats
Barack Obama
Sen. Barack ObamaD-IL · Jun 29, 2006

Mr. President, today, I wish to join my good friend, Senator Bayh, in introducing the Responsible Fatherhood and Healthy Families Act of 2006. This bill addresses a crisis afflicting too many…

Arlen Specter
Sen. Arlen SpecterR-PA · Jun 29, 2006

Mr. President, I have sought recognition to discuss the case of Hamdan v. Rumsfeld which was decided by the Supreme Court of the United States today and to address the question as to where we go from…

Olympia J. Snowe
Sen. Olympia J. SnoweR-ME · Jun 29, 2006

Mr. President, today I am introducing another piece of legislation with Senator Feinstein that addresses the critical issue of the Nation's energy policy, the EXTEND the Energy Efficiency Incentives…

Charles E. Schumer
Sen. Charles E. SchumerD-NY · Jun 29, 2006

Mr. President, today I rise to introduce mine and Senator Gordon Smith's bill, The Affordable Housing Preservation Act of 2006. Our bill provides a solution to preserve federally assisted affordable…

Jeff Bingaman
Sen. Jeff BingamanD-NM · Jun 29, 2006

Mr. President, I am pleased to introduce legislation today to protect a site of worldwide scientific significance in the Robledo Mountains in New Mexico. The bill, which is cosponsored by my…

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Tom Harkin
Sen. Tom HarkinD-IA · Jun 29, 2006

Mr. President, today I am introducing the Agricultural Cooperative Renewable Fuel Stations Act of 2006. This legislation closes a gap in the existing tax incentive for installing alternative…

Herb Kohl
Sen. Herb KohlD-WI · Jun 29, 2006

Mr. President, I rise to introduce the Railroad Antitrust Enforcement Act of 2006. This legislation will eliminate obsolete antitrust exemptions that protect freight railroads from competition. The…

Carl Levin
Sen. Carl LevinD-MI · Jun 29, 2006

Mr. President, I join my colleague, Senator Stabenow, in introducing the Great Lakes Migratory Bird Research and Management Act to learn more about a potential problem regarding double-crested…

John Cornyn
Sen. John CornynR-TX · Jun 29, 2006

Mr. President, I rise today to introduce legislation-- previously introduced in the 108th Congress--which I believe is important to the long-term competitiveness of North America. And I would like to…

Elizabeth Dole
Sen. Elizabeth DoleR-NC · Jun 29, 2006

Mr. President, across North Carolina and our Nation, many local communities face the challenge of what to do with blighted lands where factories and businesses once thrived. Though abandoned, these…

Hillary Rodham Clinton
Sen. Hillary Rodham ClintonD-NY · Jun 29, 2006

Mr. President, I am proud to introduce legislation which would designate the United States Postal Service located at 2951 New York Highway 43 in Averill Park, NY, as the Major George Quamo Post…

Mary L. Landrieu
Sen. Mary L. LandrieuD-LA · Jun 29, 2006

Mr. President, this is a bill that will reduce the estate tax and reform a system that needs to be reformed. It is an issue that many of us have been working on for several--not only several months…

Mary L. Landrieu
Sen. Mary L. LandrieuD-LA · Jun 29, 2006

Mr. President, this is a bill that will reduce the estate tax and reform a system that needs to be reformed. It is an issue that many of us have been working on for several--not only several months…

Show 9 more
Harry Reid
Sen. Harry ReidD-NV · Jun 29, 2006

Mr. President, I rise today to reintroduce legislation I originally introduced last Congress, a bill to make air travel safer by allowing local law enforcement to carry their firearms on aircrafts,…

Jim Bunning
Sen. Jim BunningR-KY · Jun 29, 2006

Mr. President, I rise today to introduce a bill to provide for relief from duties on the import of certain parts of motor vehicles. It is my intention that this duty suspension bill will be…

Wayne Allard
Sen. Wayne AllardR-CO · Jun 29, 2006

Mr. President, I rise today on the 100th anniversary of Mesa Verde National Park to offer legislation that would expand the boundary of this national treasure. Mesa Verde is one of our Nation's most…

Gordon H. Smith
Sen. Gordon H. SmithR-OR · Jun 29, 2006

Mr. President, I rise to join Senator Schumer in offering legislation that will help maintain our Nation's affordable housing inventory. Our country's stock of affordable rental housing is shrinking.…

Pete V. Domenici
Sen. Pete V. DomeniciR-NM · Jun 29, 2006

Mr. President, the fossilized trackways near the Robledo Mountains in Dona Ana County came to my attention in the early 1990s. During the 101st Congress, I cosponsored Senator Bingaman's legislation…

John D. Rockefeller IV
Sen. John D. Rockefeller IVD-WV · Jun 29, 2006

Mr. President, today, I am introducing legislation to correct an unfair decision that hurts aging, retired VA nurses. This legislation is designed to correct a problem from a bill we passed in 2001,…

Mary L. Landrieu
Sen. Mary L. LandrieuD-LA · Jun 29, 2006

Mr. President, I ask unanimous consent the order for the quorum call be rescinded. I thank the Chair. (The remarks of Ms. Landrieu pertaining to the introduction of S. 3626 are located in today's…

William H. Frist
Sen. William H. FristR-TN · Jun 29, 2006

Mr. President, I ask unanimous consent the order for the quorum call be rescinded.

George Allen
Sen. George AllenR-VA · Jun 29, 2006

I suggest the absence of a quorum.

Bill Text

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Introduced in SenateIssued June 29, 2006

II

109th CONGRESS

2d Session

S. 3626

IN THE SENATE OF THE UNITED STATES

June 29, 2006

Ms. Landrieu introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL

To amend the Internal Revenue Code of 1986 to provide estate tax relief and reform, and for other purposes.

1.

Short title

This Act may be cited as the Estate Tax Relief and Reform Act of 2006.

2.

Estate tax relief and reform after 2009

(a)

Exclusion equivalent of unified credit equal to $5,000,000

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:

(c)

Applicable credit amount

(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 equal to the applicable exclusion amount.

(2)

Applicable exclusion amount

(A)

In general

For purposes of this subsection, the applicable exclusion amount is $5,000,000, reduced (but not below zero) by an amount equal to 5 percent of so much of the amount with respect to which the tentative tax is to be computed as exceeds $100,000,000.

(B)

Inflation adjustment

In the case of any decedent dying in a calendar year after 2010, the $5,000,000 amount in subparagraph (A) shall be increased by an amount equal to—

(i)

such dollar amount, multiplied by

(ii)

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.

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.

.

(b)

Flat estate and gift tax rates

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:

(c)

Tentative tax

The tentative tax is 35 percent of the amount with respect to which the tentative tax is to be computed.

.

(c)

Increase in aggregate reduction in fair market value allowed under special use valuation

Section 2032A(a) of the Internal Revenue Code of 1986 (relating to value based on use under which property qualifies) is amended—

(1)

by striking $750,000 each place it appears and inserting $5,000,000,

(2)

by striking after 1998 in paragraph (3) and inserting after 2010, and

(3)

by striking 1997 in paragraph (3)(B) and inserting 2009.

(d)

Tax deduction for family-owned business interests

(1)

In general

Section 2057(a) of the Internal Revenue Code of 1986 (relating to deduction for family-owned business interests) is amended—

(A)

by striking $675,000 in paragraph (2) and inserting $2,500,000, and

(B)

by striking paragraph (3).

(2)

Permanent deduction

Section 2057 of such Code is amended by striking subsection (j).

(e)

Modifications of estate and gift taxes to reflect differences in unified credit resulting from different tax rates

(1)

Estate tax

(A)

In general

Section 2001(b)(2) of the Internal Revenue Code of 1986 (relating to computation of tax) is amended by striking if the provisions of subsection (c) (as in effect at the decedent's death) and inserting if the modifications described in subsection (g).

(B)

Modifications

Section 2001 of such Code is amended by adding at the end the following new subsection:

(g)

Modifications to gift tax payable to reflect different tax rates

For purposes of applying subsection (b)(2) with respect to 1 or more gifts, the rates of tax under subsection (c) in effect at the decedent's death shall, in lieu of the rates of tax in effect at the time of such gifts, be used both to compute—

(1)

the tax imposed by chapter 12 with respect to such gifts, and

(2)

the credit allowed against such tax under section 2505, including in computing—

(A)

the applicable credit amount under section 2505(a)(1), and

(B)

the sum of the amounts allowed as a credit for all preceding periods under section 2505(a)(2).

For purposes of paragraph (2)(A), the applicable credit amount for any calendar year before 1998 is the amount which would be determined under section 2010(c) if the applicable exclusion amount were the dollar amount under section 6018(a)(1) for such year.

.

(2)

Gift tax

Section 2505(a) of such Code (relating to unified credit against gift tax) is amended by adding at the end the following new flush sentence:

For purposes of applying paragraph (2) for any calendar year, the rates of tax in effect under section 2502(a)(2) for such calendar year shall, in lieu of the rates of tax in effect for preceding calendar periods, be used in determining the amounts allowable as a credit under this section for all preceding calendar periods.

.

(f)

Effective date

The amendments made by this section shall apply to estates of decedents dying, generation-skipping transfers, and gifts made, after December 31, 2009.

(g)

Additional modifications to estate tax

(1)

In general

The following provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001, and the amendments made by such provisions, are hereby repealed:

(A)

Subtitles A and E of title V.

(B)

Subsection (d), and so much of subsection (f)(3) as relates to subsection (d), of section 511.

(C)

Paragraph (2) of subsection (b), and paragraph (2) of subsection (e), of section 521.

The Internal Revenue Code of 1986 shall be applied as if such provisions and amendments had never been enacted.
(2)

Sunset not to apply to title V of egtrra

Section 901 of the Economic Growth and Tax Relief Reconciliation Act of 2001 shall not apply to title V of such Act.

(3)

Repeal of deadwood

(A)

Sections 2011 and 2604 of the Internal Revenue Code of 1986 are hereby repealed.

(B)

The table of sections for part II of subchapter A of chapter 11 of such Code is amended by striking the item relating to section 2011.

(C)

The table of sections for subchapter A of chapter 13 of such Code is amended by striking the item relating to section 2604.