The House of Representatives passed a bill on June 22 that would lower federal Estate Taxes and exempt all but the richest estates from the tax. NADA reports that the House voted 269-156 for a bill that would exempt estates valued up to $5 million for individuals and $10 million for couples. Estates worth up to $25 million would be taxed at rates equal to the capital gains rate, currently 15%, but scheduled to increase to 20% in 2011. That is still dramatically less than the current top Estate Tax rate of 46%. Estates worth $25 million or more would be taxed at twice the capital gains rate which, while in the 30 to 40% range, is still less than the current top Estate Tax rate.
This vote follows the June 8 Senate procedural vote which rejected a “motion to proceed” with earlier legislation that called for a complete repeal of the Estate Tax. That vote was 3 short of the 60 needed to pass the motion. The compromise measure passed by the House now goes to the Senate, where its fate is uncertain. NADA and NJ CAR encourage members to continue contacting their Senators to let them know the adverse impact of the “death tax,” as it exists now, on their businesses. Senators can be reached through the Capitol Hill Switchboard at (202) 224-3121. For more information, see the NADA Supports Estate Tax Repeal issue sheet and the Estate Tax Outlook and Targeted Senators on the NADA website at www.nada.org.