House Votes to Repeal Death Tax

A move this month by the U.S. House of Representatives could provide tax protection for some small businesses.

The House voted 240-179 to repeal the federal estate state. Estate tax bills can force families to sell assets including businesses to raise money to pay the government. The federal tax rate on estates is 40% of the value of the estate, although there are exemptions.

The White House has threatened to veto the bill because it would increase the federal budget by about $269 million. The bill also could be blocked by Democrats in the Senate.

Our Association supports not only the repeal of the estate tax but also the alternative minimum tax. The Association further supports the continuation of a step up in basis at the time of death and increasing the gift tax exemption amount. We continue to supports a tax system that has a balanced approach to taxation that includes fair and reasonable personal and corporate tax rates. S