McMorris Supports Legislation to Provide Relief from the Death Tax
(Washington, D.C.) Congresswoman Cathy McMorris (WA-05) today voted in favor of H.R. 5638, the Permanent Estate Tax Relief Act of 2006. This compromise legislation will provide permanent estate and gift tax relief for millions of small businesses, farmers and families. The estate tax, also known as the death tax, is a tax on the value of a deceased individual’s assets before they are passed to their heirs
“This legislation, while not a complete solution, will go a long way in reducing the tax burden on small business and farms in Eastern Washington,” said McMorris. “Our tax system should encourage families to pass down their farms and not force them to sell because the taxes are too high. This double taxation is one of the reasons why two-thirds of family-owned businesses and farms do not make it to the second generation.”
Under current law, estate tax relief will end in 2011. Without further action, the estate tax exemption will drop to $1 million per person and the maximum estate tax rate will increase to 55 percent. This bill increases the estate and gift tax exemption to $5 million per person. It also reduces the rate of taxes on estates up to $25 million to the capital gains tax (15% ) and on estates of $25 million or more to double the capital gains tax (30%.)
The first piece of legislation McMorris cosponsored in Congress was H.R. 8, to permanently repeal the estate tax. She remains committed to passing legislation that calls for a permanent and complete repeal of all estate taxes.