American Values Tax Savings Plan for the 21st Century

Title II: Phaseout of Estate and Gift Taxes - Provides for the phaseout of the estate and gift taxes.

Title III: Phaseout of Alternative Minimum Tax for All Taxpayers - Provides for the phaseout of the alternative minimum tax.

Title IV: Reduction in Individual Capital Gain Tax Rates - Reduces individual capital gain tax rates.

Title V: Increased Incentives for Retirement Savings - Increases and indexes the IRA contribution limit. Increases the income limitation applicable to conversions.

Title VI: Incentives for Health Insurance Coverage - Provides for the deduction of 100 percent of the health insurance costs of the self-employed. Permits the carryover of unused benefits from cafeteria and flexible spending arrangements.

Title VII: Incentives for Education - Excludes from gross income education distributions from qualified State tuition plans. Expands such plans to include eligible educational institutions.

Title VIII: Repeal of Telephone Excise Tax - Provides for the phaseout of the telephone excise tax. Expresses the sense of the Congress that the Federal Communications Commission E-rate discount program for schools and libraries should be terminated.

Title IX: Extension of Expiring Provisions - Provides extensions for the: (1) credit for increasing research activities; (2) work opportunity credit; and (3) subpart F exemption for active income financing.

Title X: Pay-Go Reform - Amends the Balanced Budget and Emergency Deficit Control Act of 1985 (Gramm-Rudman-Hollings Act) to set forth pay-as-you-go provisions.