CONTACTS: Linda Rozett/Rebecca Wilder
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WASHINGTON, D.C.—The United States Chamber of Commerce praised the House for passing H.R. 5638, The Permanent Estate Tax Relief Act, because it would reduce the death tax burden on small businesses and families.

 

“This bill is a clear winner for small business owners,” said Chamber Executive Vice President Bruce Josten. “Current law makes estate planning very difficult and expensive for small businesses. H.R. 5638 would exempt more small businesses from the death tax and significantly reduce the rate for others. Most importantly, it brings much-needed certainty to small businesses planning.”

 

The House bill raises tax exemption levels for estates from $2 million currently to $5 million for individuals and $10 million for couples and indexes the amount to inflation. Estates worth up to $25 million would be taxed at rates equal to the capital gains rate, currently 15%.

 

“We urge the Senate to adopt this compromise to help America’s small businesses,” Josten said. “If Congress refuses to act, in 2011 death tax rates will skyrocket to rates of up to 55%.”

Josten also noted that the Chamber would continue to work for full and permanent repeal of the death tax.

 

The U.S. Chamber of Commerce is the world’s largest business federation representing more than 3 million businesses and organizations of every size, sector, and region.

 

www.uschamber.com     

 

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