Estate Tax Elimination Propels Its Way Through House

Backers of a bill that would eradicate the estate tax are pushing for a vote in September since they have achieved enough supporters to exceed a House majority.

The measure aims to end inheritance and generation-skipping transfer taxes as well as make permanent a 35% gift-tax rate with a $5 million lifetime exclusion. 

The groups pushing the bill are urging incoming House Majority Leader Kevin McCarthy, R-Calif., to put the measure on the House’s fall agenda.  “We feel really good for a September vote.”

Yet even if the Republican majority House approves the bill, it is not likely to be addressed by the Democratic led Senate before the end of the congressional term in December.  Bills that fail to get full congressional approval must be re-introduced in 2015.

Moving the bill through the House now is likely to position estate-tax reform for later debate on larger overhaul, “It shows that when tax reform gets going in earnest, this is an important issue to a lot of members.”

See Mark Schoeff Jr., Axing Estate Tax Gains Momentum in House, Investment News, July 22, 2014.