Titus: Estate Tax Relief Will Create Certainty For Small Businesses

Press Release

Congresswoman Dina Titus of Nevada's Third District voted today to provide tax relief for families, farmers, and small businesses by protecting 99.8 percent of estates from taxes. H.R. 4154, which passed by a vote of 225 to 200, permanently extends estate tax relief by maintaining the estate tax exemption at $7 million per couple instead of letting it drop to $2 million in 2011. It also maintains the current tax rate of 45 percent.

"Permanently addressing the estate tax and enacting tax relief for our nation's small businesses will provide a measure of certainty and stability that all businesses need to grow and prosper," Congresswoman Titus said. "Although this legislation is not perfect, taking this important action will raise the exemption to protect businesses that are passed on to family members and ensure that businesses are not hit with a higher estate tax in the coming years."

Without the bill, the estate tax would be eliminated entirely in 2010 and then jump to 55 percent in 2011 and apply to all estates above $1 million per individual. Under this legislation only 7,600, or only 0.2 percent of estates, will be subject to the tax.

The House-passed bill also includes statutory pay-as-you-go (PAYGO) legislation that requires Congress to offset new spending. PAYGO rules, which were instituted during the 1990s and helped bring down the deficit and create a $5.6 trillion surplus, lapsed during the Republican administration.

"Under PAYGO, the government can only spend a dollar if it saves a dollar elsewhere. By reinstating this important provision, Congress will recommit to fiscal responsibility as we work to reduce our deficit and turn our economy around," Titus added.

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