May 10, 2000

Bipartisan Compromise Estate Tax Reform Bill Announced

A bipartisan compromise estate tax reform bill was announced today at noon at the Rally to Preserve the Estate Tax in Washington, DC, by Senator Kent Conrad (D-ND).

HIGHLIGHTS OF THE ESTATE TAX REFORM ACT OF 2001

Co-sponsored by Senator Kent Conrad (D-ND) and Senator Thad Cochran (R-MS)

The Estate Tax Reform Act proposes an increase in the unified credit as follows:

2002 $1 million
2003 $1.125 million
2004 $1.250 million
2005 $1.5 million
2006 $2 million

There would also be an increase in the qualified family-owned business exclusion as follows:

2002 $1.5 million
2003 $2.0 million
2004 $2.5 million
2005 $3.0 million
2006 $4.0 million

Exclusions would be doubld for couples (i.e., in 2006 a $4 million exclusion for couples).

Under provisions of the compromise bill, 40% of the estates taxable today would no longer be taxed in 2002, and two-thirds would no longer be taxed by 2006. Virtually all family farms would be exempt from this plan.

For more information about the bill call Stuart Nagurka or Steve Posner at Senator Kent Conrad’s office, (202) 224-0642.

For more information about the rally and Responsible Wealth's Call to Preserve the Estate Tax, call Betsy Leondar-Wright at Responsible Wealth, (617) 423-2148 x13.