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the precise question at issue here; i.e., the proper treatment
under the GST tax effective-date provisions of transfers effected
pursuant to the exercise, release, or lapse of a general power of
appointment. As previously discussed, the Eighth and Ninth
Circuits in Simpson and Bachler, respectively, have held the
plain language of TRA 1986 section 1433(b)(2)(A) excepts from GST
tax a generation-skipping transfer effected pursuant to the
exercise of a general power of appointment under a trust that was
irrevocable on September 25, 1985. We respectfully disagree with
the holdings in these two cases. Instead, we adhere to the view,
articulated by the Second Circuit in Peterson Marital Trust, that
the words of TRA 1986 section 1433(b)(2)(A) “can only be given
meaning in a particular context”. Peterson Marital Trust v.
Commissioner, 78 F.3d at 799.7 Consistent with Natl. Muffler
Dealers Association and Chevron U.S.A., Inc., we do not evaluate
the validity of section 26.2601-1(b)(1)(i), GST Tax Regs., by
examining the plain language of TRA 1986 section 1433(b)(2)(A) in
a vacuum--we also are obliged to consider the origin and purpose
of the statute.
Our review of the legislative history of TRA 1986 as it
pertains to the question presented reveals two matters that
warrant discussion. First, as we comprehend statements by the
Committee on Ways and Means (the Committee) in H. Rept. 99-426,
7 Cf. Greenpeace, Inc. v. Waste Techs. Indus., 9 F.3d 1174,
1179-1181 (6th Cir. 1993).
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