House Vote On Estate Tax Repeal Due Next Week

by Mike Godfrey, Tax-News.com, Washington

08 April 2005

Senior Republicans have announced that the House of Representatives will next week vote on a proposal to permanently repeal estate tax.

Under legislation passed in the 2001 package of tax cuts, estate tax is set to be reduced to zero percent in 2009. However, to satisfy federal budget requirements, the tax is due to by reinstated at pre-2001 levels at the start of 2011.

"We feel strongly that the best thing to do is to permanently repeal this tax," stated House Majority Whip Roy Blunt, (R-Mo.) according to Dow Jones.

Blunt added that that the House is open to ideas from the Senate on a solution to the estate tax debate.

In the Senate, the current attempt to permanently remove the estate tax from the tax code is being championed by Republican Jon Kyl of Arizona, who has been in talks with Democrat negotiators concerning the form of new legislation since last year. Kyl’s ultimate goal is to see the estate tax rate reduced to 0% on a permanent basis, although he has indicated that he would settle for a legislative compromise that would significantly, and permanently, reduce the estate tax burden.

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