08/04/06 Death & Taxes

Reducing the Estate Tax. I'm Greg Martin with today's Northwest Report. Before leaving town for the August recess - the U.S. House approved a measure that would permanently reduce the estate tax. Senate Energy Chairman Pete Domenici says the tax provision is long overdue. DOMENICI: The estate tax, the death tax has been a very confiscatory tax for a long time. I don't think that people know that many estates when the death tax was due, the death tax was frequently in excess of 50%. Often much higher than that meaning that after all your life, death happens and more than 50% of your estate goes to the government. Domenici says he agrees with the estate tax reduction outlined in the bill - and will support the measure in the Senate. DOMENICI: It says that estates of 5 million dollars per individual, 10 million per couple, there is no tax on that amount of an estate. Many ranchers, businessmen, small business people; all of those now who have 5 million dollars, they will not pay any tax. I think that's fair. Those are not giant estates. Up to 25 million will pay tax also but their tax will only be 15% and estates over 25 million will be 30%. In an effort to sweeten the deal for Democrats - the legislation also includes a provision to increase the minimum wage to $7.25 in 2009 - and extensions of expiring tax provisions. Now here's today's Washington Grange Report. (GRANGE) That's today's Northwest Report. I'm Greg Martin on the Northwest Ag Information Network.