(Washington, DC) The U.S. House of Representatives today approved H.R. 5638, the "Permanent Estate Tax Relief Act of 2006," by a vote of 269 to 156.  Congressman Mac Thornberry (TX-13) voted for the bill.

"In some ways, this was a bitter pill for me to swallow. I believe that the death tax is wrong. It is wrong for estates of $100, and it is wrong for estates of $100 million. This tax should be eliminated, and along with a majority of my colleagues here in the House, I have voted to do so many times," said Thornberry.

However, Thornberry said it is clear that the present U.S. Senate cannot deliver a full repeal.

"Even though a majority of Senators have voted to eliminate the death tax, they cannot get the 60 votes needed to end the filibuster. The uncertainty of the current situation makes planning for farmers, ranchers, and small business owners impossible. Time is running out, and we need to let people know what the law will be. Therefore, somewhat reluctantly, I voted for this compromise. I continue to believe that this tax should be eliminated," Thornberry said.

Estate tax relief approved by Congress five years ago is set to expire in 2010. If Congress does not act before that expiration date, the estate tax exemption will fall, and the maximum estate tax rate will return to 55 percent.

H.R. 5638 will take effect on January 1, 2010. Under the bill:

• The estate tax exemption increases to $5 million per person (indexed for inflation).
• The tax rate for estates up to $25 million is set at 15 percent. (That rate will rise to 20 percent in 2011 if Congress does not act to extend the lower rate).
• The tax rate for estates of more than $25 million is set at 30 percent. (That rate becomes 40 percent in 2011 if Congress does not act to extend the lower rate).

The Senate is expected to vote on H.R. 5638 before its Fourth of July recess.

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