House Approves Measure to Provide Permanent Death Tax Relief | News | Congressman Ed Whitfield

News | Congressman Ed Whitfield | United States Representative

House Approves Measure to Provide Permanent Death Tax Relief WASHINGTON, June 22 - The House of Representatives today approved H.R. 5638, the Permanent Estate Tax Relief Act of 2006, which will provide permanent estate tax and gift tax relief for farmers and small business owners in the First District. U.S. Rep. Ed Whitfield supported the bill, which passed by a vote of 269 to 156.

The estate tax, also known as the death tax, is a tax on the value of a deceased individuals assets before they are passed to their heirs. Many economists have noted that the death tax penalizes savings and makes it more difficult for farmers and small business owners to pass on their lifes work to their families.

"It is simply unconscionable that the federal government levies a tax upon the passing of a loved one a tax on money that has already been taxed," Whitfield said. "The legislation we passed today will provide permanent relief from this inherently unjust tax, allowing Americans who have worked hard their whole lives to pass down the fruits of their labor," continued Whitfield.

The Permanent Estate Tax Relief Act reunifies the estate, gift, and generation-skipping transfer taxes and increases the estate and gift tax exemption to $5 million per person. In addition, married couples can carry over any unused part of their spouses $5 million exemption. For estates between $5 million and $25 million, the rate of tax will be the same as the capital gains tax rate. On estates valued at more than $25 million, the top marginal rate of tax will be double the capital gains tax rate.

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