WASHINGTON- On the first day of the 112th Congress, Congressman Bob Latta (R- Bowling Green) introduced H.R. 143, a bill that if passed, would permanently repeal the estate tax and ensures that individuals are not taxed on the increased value of an estate by retaining the stepped-up basis at death. A copy of the legislation can be found here.
The estate tax, also known as the death tax, is a federal tax levied against the assets of a person’s estate when they pass away. Historically, the estate tax was levied at fifty-five percent of one’s estate over $1 million, but the exemption level was increased over the past ten years after a series of tax cuts were signed into law in 2001 and 2003. In 2010, individuals were freed from having to pay the estate tax. On January 1, 2011, the estate tax was reinstated for a two year time period at a 35% rate and a $5 million per person exemption.
“The estate tax is archaic and goes against the grain of hard working American families who strongly believe in a founding principle of our country that with hard work, future generations can be better off than the last. Permanently eliminating the estate tax is an important step in ensuring that our small businesses and farmers, an integral part of our nation’s economy, can grow and prosper into future generations. While the federal government may have taxed a portion of hard-earned American family dollars in the past, it doesn’t mean they have the right to do the same to future generations,” Congressman Latta stated after introducing the legislation.
H.R. 143 has been referred to the House Ways and Means Committee.