House Passes Permanent Estate Tax Relief Act

U.S. House of Representatives, Oct 26, 2006

WASHINGTON, D.C. – The U.S. House of Representatives approved the Estate Tax and Extension of Tax Relief Act of 2006 (H.R. 5970) with a vote of 230 – 180.  This legislation prevents most Americans from ever needing to pay the estate tax.

“This bill provides permanent relief for millions of Americans who would have been unfairly punished by our tax code for the hard-earned assets of a recently deceased family member,” said U.S. Rep, Ron Lewis (KY-02). “Many small businesses in our country are family owned and operated and should be passed on to younger generations without the fear of overwhelming tax penalties.”

Under current law, the estate tax will gradually decline until it is fully eliminated in 2010. However, in 2011, the tax would return in full force. H.R. 5970 provides permanent estate tax relief.

In addition to the estate tax relief, H.R. 5970 also extends through 2007 a number of tax provisions including the Work Opportunity Tax Credit, the Research and Development tax credit and the state sales tax deduction.  The bill also increases the federal minimum wage from $5.15 per hour to $7.25 over the next three years.