House Approves Permanent Repeal of Estate Tax, Battle Moves to Senate
The U.S. House of Representatives vote April 13 to permanently repeal the estate tax is a win for President Bushs economic program. But the battle to end federal taxation of estates is far from over. The measure faces its biggest hurdle in the Senate, where lawmakers are divided over repeal.
The 272-to-162 vote was not surprising. This is the fourth time that the House has voted for permanent repeal since approving legislation in 2001 that allowed estate taxes to be gradually phased out by 2010. But if that law is not made permanent, in 2011 the estate tax will return to its pre-2001 level when estates worth more than $675,000 were taxed at a 55% rate.