WASHINGTON (June 23, 2006) — The House of Representatives has passed a compromise bill to reduce the estate tax that supporters hope will persuade the Senate to reconsider the issue.
The compromise legislation raises the estate tax exemption level to $5 million for individuals and $10 million for couples. Currently, the tax exemption is slowly increasing annually to total repeal in 2010, but in 2011 the tax would revert to the old $1 million exemption.
The House passed a bill to repeal the tax in 2005, but in June 2006 the Senate failed by three votes to invoke cloture and limit debate on its repeal legislation.
“This is a great victory for American small business owners,” said Dan Danner, executive vice president of the National Federation of Independent Business, on the passage of the compromise bill. “NFIB will continue to fight for full repeal of the death tax, but our members need guaranteed relief they can plan on right now.”
Virtually all automotive aftermarket associations, including the Tire Industry Association, also support repeal of the estate tax.