Quarty v. United States

Section 13208 of the Omnibus Budget Reconciliation Act of 1993 ("Section 13208" of "OBRA 1993"), Pub. L. No. 103-66, 107 Stat. 312, 469 (1993), set the maximum federal estate and gift tax rates at 53 % and 55 %. Section 13208 was enacted on August 10, 1993, and provided that these rates apply to the estates of decedents dying and gifts made after December 31, 1992. See id. This case presents the question of whether the application of these tax rates during the eightmonth period prior to the statutes enactment violates the Due Process Clause or Takings Clause of the Fifth Amendment of the United States Constitution, or the Constitutions prohibition on direct taxation without apportionment. See U.S. Const. art I, S 2, cl. 3 & S 9, cl. 4. The district court held that the retroactive application of these tax rates was constitutional; accordingly, it granted the governments motion to dismiss this tax refund suit. We have jurisdiction under 28 U.S.C. S 1291 and we affirm.