Bipartisan Estate Tax Bill Introduced in House

Last Updated: 8/31/2007

With the estate tax set to expire in 2010, a bipartisan bill has been introduced in the U.S. House of Representatives that would increase the estate tax exemption by $250,000 every year from 2009, when the exemption is set to be $3.5 million, until 2015, at which point the exemption would have increased to $5 million. From 2015 on the exemption would rise at the rate of inflation.

The bill, introduced by Reps. Harry Mitchell (D-AZ) and Christopher Shays (R-CT), would also create two tax rates: 15 percent for estates worth $25 million and less and 30 percent for estates worth more than $25 million. Under current law, the top tax rate will be 45 percent in 2009.

Earlier in the year, the U.S. Senate voted 51–41 to reaffirm its support for a budget resolution that establishes the current-law 2009 estate tax rules through 2012.

To read a copy of the bill, H.R. 3170, click here.