House approves Death Tax reduction

June 26, 2006

The House of Representatives has passed legislation that would permanently reduced the Death Tax.

The bill, H.R. 5638, 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.

The bill's next stop is the Senate.