WASHINGTON, D.C. - The U.S. House of Representatives today approved H.R. 4154, the Permanent Estate Tax Relief for Families, Farmers, and Small Businesses Act of 2009, by a vote of 225 to 200. The legislation, introduced by Ways and Means Committee Member Earl Pomeroy (D-ND), permanently extends current law which would exempt estates up to $3.5 million per individual ($7 million total for married couples) with a maximum rate of 45 percent on estates above this threshold.
“We have to give certainty and stability to our tax laws so that families, farms and businesses can plan their finances," said Ways and Means Committee Chairman Charles B. Rangel (D-NY). “This is a fair and responsible bill which eliminates any doubt as to the future of the estate tax, allowing businesses, large and small, to focus on jumpstarting our economy and putting Americans back to work."
Additionally, the bill would repeal the enactment of carryover basis rules that would require many heirs, even those exempt from paying estate tax, to pay additional taxes on the built-in gains of property inherited starting in 2010.
H.R. 4154 was considered in the House under a procedure that added the text of H.R. 2920, the Statutory PAYGO Act of 2009, as passed by the House on July 22nd before being sent to the Senate. The "pay as you go" principle of budget discipline requires Congress to pay for any new spending, outside of an economic crisis. The Statutory PAYGO Act would make that principle law. A previous Congress established the estate tax, so H.R. 4154 is not a new policy to be paid for.
