Passing legislation that would permanently reduce the Death Tax in the Senate may be a "tough battle," says Paul Fiore, director of government and business relations for the Tire Industry Association.
The House of Representatives approved the bill, H.R. 5638, last week. It would raise the threshold for the tax to estates valued at $5 million for individuals and $10 million for couples, according to the Automotive Aftermarket Industry Association.
Tax rates on estates valued between the threshold amount and $25 million would be set to the capital gains rate, which is 15%. The value of estates above $25 million would be taxed at twice the capital gains rate in the year 2011, unless the current rate is extended.
Partisan concerns may complicate the bill's passage, according to Fiore. "For the Far Right, this is too much of a compromise," he says.
A Senate vote could be held by the end of the first week in July, he adds.
