Estate Tax
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SENATE ROTH
Increase in the exemption to $1 million, phased in over 10 years. Family-owned businesses and farms would get a $1 million exemption in 1998.
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HOUSE ARCHER
The portion on an estate exempt from tax would increase from $600,000 to $1 million by 2007. Estimated cost: $7.5 billion over five years, $27 billion over 10 years.
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SENATE DASCHLE
An exclusion of $900,000 of the estate's value will be available if the business or farm (which must comprise over 50 percent of a decedent's estate) continues to be actively operated by children or grandchildren for at least five of eight years during the first decade following
inheritance. The exclusion is available in addition to the unified gift and estate tax credit. Estimated cost: $3 billion
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HOUSE GEPHARDT
Increase the exemption for family-owned businesses to $1,000,000 effective 1/1/98.
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CLINTON PLAN
Would create an exclusion from federal estate taxes of $900,000 for family owned businesses or farms, in addition to the current $600,000 exemption for a single filer on all estates. Estimated cost: $2.3 billion over 5 years, $7.2 billion over 10.
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Alternative Minimum Tax
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SENATE ROTH
No reduction in the corporate alternative minimum tax. For individuals, the Senate uses a different formula than the House to increase the exemptions that individuals could take to reduce their taxable income under the alternative minimum tax. Estimated cost: $350 million over five years; $14.8 billion over 10 years.
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HOUSE ARCHER
This tax--created in 1986 to ensure that everyone, especially companies, paid some income tax annually--would be repealed for corporations with gross receipts below $5 million a year. Estimated cost: $577 million over five years, $762 million over 10 years. Bigger companies would be permitted to use a faster depreciation schedule than currently. Estimated cost: $11.8 billion over five years, $22.2 billion over 10 years.
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SENATE DASCHLE
Annually increase exemption amounts by $600 (joint)/ $450 (single)
between 2001 and 2004.
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HOUSE GEPHARDT
No provision
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CLINTON PLAN
For purposes of the 28 percent alternative minimum tax, would require high income taxpayers to add back into taxable income the 30 percent of long-term capital gains that the President proposes to exclude. Thus there would be little or no capital gains tax relief for those subject to the AMT. But more taxpayers would be subject to the AMT and thus would owe more taxes than if the capital gains rate hadn't been cut.
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