CURRENT RELIEF FROM ESTATE TAX SET TO EXPIRE AT THE END OF 2010

Washington, Jun 22, 2006 - "I owned a business and I am well acquainted with the burdens of running one," said Rep. Cliff Stearns (R-Ocala).  "Excessive taxes and regulations harm these enterprises and working Americans, and one of the most unfair taxes on the books was the one that taxes you after you are dead.  I am pleased to join in making relief from this misguided tax permanent."

The House today approved H.R. 5638, the Permanent Estate Tax Relief Act.  Under current law, estate tax relief will slowly be phased out and then return in full force in 2011, applying to all estates exceeding $1 million with a maximum tax rate of 55 percent.  H.R. 5638 permanently sets the exempted amount at $5 million, indexed for inflation, and reduces the tax rate on estates of up to $25 million to the same rate as capital gains (currently 15 percent, set to increase to 20 percent in 2011 unless extended), and to twice the capital gains rate on estates exceeding $25 million.  Estates under $5 million would be free of the death tax by 2010.

"The exemption will protect a majority of small business owners and farmers from paying any estate tax at all, and the lower tax rate on estates over the exempted amount is a matter of basic fairness," Added Stearns.