Effort to repeal estate tax underway

Northwestern Financial Review, Jul 1-Jul 14, 2002

An effort to permanently repeal the estate tax is picking up steam in Congress. On June 6, the House of Representatives passed a bill 256-171 to permanently repeal all estate taxes. The Senate is preparing to vote on a bill that would repeal all taxes on estates valued up to $4 million. A vote is expected by the Independence Day break.

Under current law, the estate tax is gradually being phased out and will be eliminated in 2010, but will be reinstated in 2011 at 2001 tax rates. The Senate bill would levy taxes ranging from 18 percent to 55 percent on estates valued in excess of $4 million. Some banker groups say the Senate bill does not go far enough and instead favor the House approach.