National Notes

House Bill Offers Some Estate Tax Relief

The U.S. House of Representatives recently passed legislation to enact estate tax relief that Congress considers "a first step in the effort to repeal" the death tax. Among other less notable provisions, H.R. 3832 reduces the top estate tax rate from 55% to 50% by 2002. Then all estate tax rates would be reduced by one percent in 2003 and by two percent each following year. Also, the bill would repeal the 5% "bubble tax" on estates.

H.R. 3832 moved quickly through the House, raising suspicions that it has more to do with elections than with estate tax relief. The Senate may soon pass it as well, but the bill contains similar legislation to that vetoed by President Clinton in 1999.