07/ 25/ 2006
Early in June, the Senate considered legislation to permanently repeal the death tax, but failed, 57 – 41, to get the 60 votes needed to proceed under Senate rules.
Under pressure for a permanent solution before the end of the year, the House then passed a compromise reform bill. The Permanent Estate Tax Relief Act of 2006 (H.R. 5638) provides much-needed relief and predictability for small businesses by exempting estates worth less than $5 million for individuals, or $10 million per couple.
The bill then went to the Senate where, in the last week of June, Senate leaders postponed a vote again because they lacked the 60 votes needed to proceed.
"We are working diligently with key members of Congress to push for real reform of the death tax once and for all," said Dan Danner, NFIB’s executive vice president. "A permanent reduction in the death tax is a strong step toward full repeal."
While there is no guarantee that Congress will take up the issue again before it adjourns at the end of the year, NFIB will continue to meet with members of Congress and support grassroots efforts in order to enable small-business owners to pass their businesses on to the next generation.
Legislation was enacted in 2001 that set the death tax on a path to permanent repeal in 2010, but this relief is only temporary. Unless Congress acts to make it permanent, the death tax will come back in full force in 2011 at 55 percent.
Fixing a Broken Process
House plans to move on the NFIB-supported Right to Repair Act
The U.S. House Energy and Commerce Committee plans to consider the Motor Vehicle Right to Repair Act later this year. NFIB supports the act on behalf of its 24,000 members who are small and independent repair shops—many of whom say they can't get the information necessary to repair vehicles and therefore must turn customers away. The legislation will make it mandatory for manufacturers to disclose to car buyers and independent repair shops the information needed to repair or maintain their vehicles.
NFIB.com
Tell your lawmakers what you think of their death-tax vote and ask them for their support of this important small-business issue. Go to www.NFIB.com/taxrelief.
