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House Passes Permanent Estate Tax Relief Act

By: Ron Lewis
By: Ron Lewis
Date: July 30, 2006
Location: Washington, DC
Issues: Taxes


House Passes Permanent Estate Tax Relief Act

Bill extends important tax relief to help families and small businesses

- The U.S. House of Representatives approved the Estate Tax and Extension of Tax Relief Act of 2006 (H.R. 5970) Friday 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.

"This legislation extends a number of tax provisions critical to American economic growth and opportunity," said Lewis. "Permanent estate tax relief coupled with other tax relief extensions and a gradual increase in the federal minimum wage will stimulate continued economic growth, allowing families to have more money to invest and small business to expand and create more jobs."

A member of the House Ways and Means Committee, Lewis met with Chairman Bill Thomas (R-CA) and House Majority John Boehner (R-OH) several times throughout the last few weeks to strongly advocate the inclusion of pro-business tax relief extensions in the drafted legislation before it reached the House floor for final consideration Friday.

http://www.house.gov/list/press/ky02_lewis/estate.html

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