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Pomeroy Estate Tax Relief Bill
On Thursday, December 3, 2009 the House passed legislation introduced by Congressman Pomeroy to establish long term clarity on estate tax. Pomeroy's bill, H.R. 4154, the Permanent Estate Tax Relief for Families, Farmers, and Small Businesses Act of 2009, would provide very substantial tax relief by exempting 99.75 percent of individuals in this country from having to pay any estate tax at all. Congressman Pomeroy’s bill will also provide stability to families in planning their estates, as opposed to current law, which changes year to year.
For calendar year 2009, the estate tax exemption amount is $3.5 million ($7 million total for a married couple) and the maximum tax rate on estates is 45%. H.R. 4154, the Permanent Estate Tax Relief for Families, Farmers, and Small Businesses Act of 2009, introduced by Congressman Pomeroy, would permanently extend this estate tax exemption amount and tax rate. Absent this change, the estate tax is scheduled to enter one year of full repeal in 2010 followed by a return of the estate tax in 2011 with much lower exemption amount ($1 million) and a much higher maximum tax rate (55%). A permanent fix is needed to provide families with the stability necessary to make long-term estate planning decisions.
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