Republican bill vs. Democratic alternative

A comparison of the Republican bill to repeal estate taxes gradually and a Democratic alternative.

GOP bill

Estimated cost: $105 billion over 10-year phaseout; $50 billion annually thereafter.

Repeal occurs gradually from 2001-2010:

-- 2001, the top tax rate of 55 percent and a 5 percent surtax on large estates is repealed.

-- 2002, rates over 50 percent repealed.

-- 2003-2006, 1 percentage point reduction in all rates.

-- 2007, 1.5 percentage point reduction in all rates.

-- 2008-2009, rates reduced by 2 percentage points each year.

-- 2010, all remaining rates repealed.

States with inheritance taxes linked to federal tax would have to rewrite laws to keep them.

Democratic alternative

Estimated cost: $22 billion over 10 years.

-- All rates reduced by 20 percent in 2001, dropping top 55 percent rate to 44 percent.

-- Current $1.3 million exemption for farms and small businesses raised to $2 million.

-- Current $675,000 exemption for all others raised to $1.1 million, then $1.2 million in 2006.

-- Credit for state estate taxes repealed, but deduction allowed.