House Votes to Reduce Estate Taxes

Last Thursday the House of Representatives passed a bill (H.R. 5638) that would drastically reduce estate taxes.  Under the new bill estates valued at less than $5 million for an individual or $10 million for a couple would be permanently exempt from estate taxes after 2010.  Estates up to $25 million would be taxed at 15%, the same rate as capital gains.  Under current law the estate tax would be phased out by 2010, but return to a 55% rate in 2011.

The Senate is expected to take up the measure this week.  Inc.com has more details.