Emerson Votes to Extend Death Tax Relief

Emerson Votes to Extend Death Tax Relief

"Every year it seems I cast a vote to make this important tax relief a permanent part of our tax code," Emerson said. "Our tax code is a creeping giant - moving the Alternative Minimum tax and expiring bracket relief provisions closer and closer to more Americans. The estate tax also hits American families at an unexpected time - the tax is as unpredictable as a date of death. It is important for family farms and small businesses to stay in their families from one generation to the next."

The Estate Tax relief provided by Congress in 2001 is set to expire in 2010. Unless this bill is signed into law, the Estate Tax will rise to a 55 percent rate imposed on estates valued at over $1 million in 2011.

"A family farmer who has worked hard to expand the business should not get a tax bill for $550,000 on the day he dies. This bill guarantees stepped up basis and eliminates the uncertainty of an onerous tax on American estates," Emerson said.

H.R. 5638 would permanently increase the exemption amount to $5 million per person (indexed for inflation) starting in 2011. Unused exemption would carry over to the surviving spouse. For estates valued above the exemption amount, up to $25 million, the bill would lower the Estate Tax rate to coincide with the tax rate for capital gains, now 15 percent, but set to increase to 20 percent in 2011.

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