House Votes to Repeal Estate Tax

Fifty-eight Democrats crossed party lines Wednesday to join Republicans in a vote to repeal the tax known as the Death Tax.

The repeal of the estate tax, if made into law, would be phased in slowly over a period of 10 years, with most of the savings coming in the next decade. "If you want to protect your estate, don't die for 10 years," quipped Rep. Charles Rangel of New York, senior Democrat on the House Ways and Means Committee.

Although only about 2 percent of Americans would be directly affected by a repeal of this tax, there is great support for the repeal as a means of saving small family-owned businesses. Under the current estate tax rules, which apply a hefty tax on estates valued at over $675,000, many heirs of family-run businesses find they are forced to sell the business in order to pay the taxes.

The bill, H.R. 8, calls for a change in capital gains taxes, which would go hand in hand with the repeal of the estate tax. The bill would alter the way assets are valued for capital gains purposes, allowing the first $1.3 million in gain to be exempt unless the heir is a surviving spouse, in which case the first $4.3 million in gain would be exempt.

The bill now goes to the Senate, where it is expected that changes will be made.

You may like these other stories...

As anyone who's ever been through a divorce can attest, the pain of parting with your spouse isn't just emotional—the fallout from divorce can wreak financial havoc as well long after the dust in the courtroom...
Former DOJ Tax Division head Kathryn Keneally joining DLA Piper in New YorkGlobal law firm DLA Piper announced on Thursday that Kathryn Keneally, the former head of the US Justice Department Tax Division, is joining the firm...
OECD calls for coordinated fight against corporate tax avoidanceDavid Jolly of the New York Times reported that dozens of countries with the most advanced economies have agreed on principles for concrete action to prevent...

Already a member? log in here.

Upcoming CPE Webinars

Sep 24
In this jam-packed presentation Excel expert David Ringstrom, CPA will give you a crash-course in creating spreadsheet-based dashboards. A dashboard condenses large amounts of data into a compact space, yet enables the end user to easily drill down into details when warranted.
Sep 30
This webcast will include discussions of important issues in SSARS No. 19 and the current status of proposed changes by the Accounting and Review Services Committee in these statements.
Oct 21
Kristen Rampe will share how to speak and write more effectively by understanding your own and your audience's communication style.
Oct 23
Amber Setter will show the value of leadership assessments as tools for individual and organizational leadership development initiatives.