To provide financial security to family farm and small business owners by ending the unfair practice of taxing someone at death.

February 14, 2003

Mr. KYL introduced the following bill; which was read the first time

To provide financial security to family farm and small business owners by ending the unfair practice of taxing someone at death.

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 `Death Tax Fairness Act of 2003'.

SEC. 2. REPEAL OF ESTATE AND GENERATION-SKIPPING TRANSFER TAXES ACCELERATED TO 2005.

(a) ESTATE TAX REPEAL- Section 2210 of the Internal Revenue Code of 1986 (relating to termination) is amended--

(1) by striking `December 31, 2009' and inserting `December 31, 2004' both places it appears,

(2) by striking `January 1, 2010' in subsection (b) and inserting `January 1, 2005', and

(3) by striking `December 31, 2020' in subsection (b)(1) and inserting `December 31, 2014'.

(b) GENERATION-SKIPPING TRANSFER TAX REPEAL- Section 2664 of such Code (relating to termination) is amended by striking `December 31, 2009' and inserting `December 31, 2004'.

(c) CONFORMING AMENDMENTS-

(1) The table contained in section 2010(c) of such Code is amended--

(A) by striking `and 2005',

(B) by inserting a period after `$1,500,000', and

(C) by striking the last 2 items.

(2) Section 1014(f) of such Code is amended by striking `December 31, 2009' and inserting `December 31, 2004'.

(3) Section 1022 of such Code is amended--

(A) by striking `December 31, 2009' in the heading and in subsection (a)(1) and inserting `December 31, 2004', and

(B) in subsection (d)(4)(A)--

(i) by striking `2010' and inserting `2005', and

(ii) by striking `2009' in clause (ii) and inserting `2004'.

(4) The table contained in section 2001(c)(2)(B) of such Code is amended--

(A) by inserting a period after `48 percent', and

(B) by striking the last 3 items.

(5) Section 2001(c)(2)(A) of such Code is amended by striking `2010' and inserting `2005'.

(6) The item in the table of sections for part II of subchapter O of chapter 1 of such Code relating to section 1022 is amended by striking `December 31, 2009' and inserting `December 31, 2004'.

(7) Section 501(d) of the Economic Growth and Tax Relief Reconciliation Act of 2001 (Public Law 107-16) is amended by striking `December 31, 2009' and inserting `December 31, 2004'.

(8) Paragraph (3) of section 511(f) of the Economic Growth and Tax Relief Reconciliation Act of 2001 (Public Law 107-16) is amended by striking `December 31, 2009' and inserting `December 31, 2004'.

(9) Paragraph (2) of section 521(e) of the Economic Growth and Tax Relief Reconciliation Act of 2001 (Public Law 107-16) is amended by striking `December 31, 2009' and inserting `December 31, 2004'.

(10) Subsection (f) of section 542 of the Economic Growth and Tax Relief Reconciliation Act of 2001 (Public Law 107-16) is amended by striking

`December 31, 2009' each place it appears and inserting `December 31, 2004'.

(d) EFFECTIVE DATE- The amendments made by this section shall take effect on the date of the enactment of this Act.

SEC. 3. PERMANENT REPEAL OF ESTATE TAXES.

Section 901 of the Economic Growth and Tax Relief Reconciliation Act of 2001 is amended by striking `this Act' and all that follows through `2010.' in subsection (a) and inserting `this Act (other than title V) shall not apply to taxable, plan, or limitation years beginning after December 31, 2010.', and by striking `, estates, gifts, and transfers' in subsection (b).

END