Estate Tax Reform Bill (Withdrawn)

[Sam Spade]

Estate Tax Reform Bill

Effective FY 2008, Clause 3 of the Tax Increase Act is amended as follows:
Each portion of the value of the estate shall be taxed at the following rates, with each rate corresponding to the tax rate on only the portion of the estate that falls in the appointed range:

a) $0-$2,000,000 – 0%
b) $2,000,001-$4,000,000 – 3%
c) $4,000,001-$9,000,000 – 4%
d) $9,000,001-$15,500,000 – 5%
e) $15,500,001-$22,000,000 – 7.5%
f) $22,000,001-$45,000,000 – 10%
g) $45,000,001-$75,000,000 – 12.5%
h) $75,000,001-$100,000,000 – 15%
i) $100,000,001 and above – 17.5%
j) Farmers' non-residential property shall be taxed at 50% the normal tax rate.

(Sponsor: Ebowed)

[Sam Spade]

Well since this hit the floor Ebowed was opening himself up to this amendment:

I propose to replace Sections A-J with an amendment to create a flat percentage of 8%

That is not a specific enough amendment - You need to go back to the original bill and tell me at what "price range" the 8% starts at.

[Sam Spade]

I wish to amend the entirety of the bill to read as follows:

Effective FY 2008, Clause 3 of the Tax Increase Act is amended as follows:
Each portion of the value of the estate shall be taxed at the following rates, with each rate corresponding to the tax rate on only the portion of the estate that falls in the appointed range:

a) $0-$5,000,000 – 0%
b) $5,000,001-$10,000,000 – 1%
c) $10,000,001-$17,500,000 – 3%
d) $17,500,001-$25,000,000 – 6%
e) $25,000,001-$50,000,000 – 10%
f) $50,000,001-$100,000,000 – 15%
g) $100,000,001 and above – 25%
h) Farmers' non-residential property shall be taxed at 50% the normal tax rate above $10,000,000.

[Sam Spade]

I withdraw my amendment for now, but I ask what the effect would be of eliminating estate taxes.

I want to say that the amount taken in each year by estate taxes is 20-30 billion, but I don't have any stats for that.

[Sam Spade]

We are voting on the following amendment:

I wish to amend the entirety of the bill to read as follows:

Effective FY 2008, Clause 3 of the Tax Increase Act is amended as follows:
Each portion of the value of the estate shall be taxed at the following rates, with each rate corresponding to the tax rate on only the portion of the estate that falls in the appointed range:

a) $0-$5,000,000 – 0%
b) $5,000,001-$10,000,000 – 1%
c) $10,000,001-$17,500,000 – 3%
d) $17,500,001-$25,000,000 – 6%
e) $25,000,001-$50,000,000 – 10%
f) $50,000,001-$100,000,000 – 15%
g) $100,000,001 and above – 25%
h) Farmers' non-residential property shall be taxed at 50% the normal tax rate above $10,000,000.

Please vote Aye, Nay or Abstain.

[Sam Spade]

Aye.

With 5 votes in favor, 4 against and 1 seat absent, the amendment has passed.

[Sam Spade]

I agree with Jas.  The bill is withdrawn.