Estate Tax Bill Up for Vote in House

Estate Tax Bill Up for Vote in House

Legislation would extend current exemptions.

On Thursday the House of Representatives will vote on legislation introduced by Congressman Earl Pomeroy, D-N.D., to establish what he calls long term clarity on estate tax. H.R. 4154, the Permanent Estate Tax Relief for Families, Farmers, and Small Businesses Act of 2009 would permanently extend the 2009 estate tax exemption amount and tax rate. For calendar year 2009, the estate tax exemption amount is $3.5 million for and individual and $7 million for a married couple, and the maximum tax rate on estates is 45%.

According to Pomeroy, this bill will provide full and permanent estate tax relief for 99.75% of families, farmers, and small businesses in this country, meaning they would not have to pay any estate tax. By making the 2009 estate tax level permanent, Pomeroy says this bill provides the stability families need to make long-term decisions and avoid the estate planning roller coaster that will result from current law.

Absent this change, the estate tax is scheduled to enter one year of full repeal in 2010 followed by a return in 2011 of estate tax levels from 2001 with an exemption amount of $1 million and a higher maximum tax rate of 55%.

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