Congress Takes Aim at Estate Taxes

June 12, 2000 9:10 AM, EDT

Trucking companies are part of a ground swell of public sentiment seeking repeal of the estate tax,which kicks in when family-held businesses or property are transferred from one generation to another, and Congress is taking note.

The tax, whose antecedents date back to the Roman Empire, was imposed by the federal government to help pay for World War I, but more and more opponents today feel it is an anti-family law.

About 100 pieces of legislation are circulating in the Capitol to either amend or repeal the levy. One House bill would phase out estate and gift taxes over a 10-year period. Another would exempt the first $4 million of an estate for closely held businesses and farms and reduce the tax level.

Current law requires that any inheritance with a net value of $675,000 must be subject to the tax, which starts at 37% and increases to 55%. Farms and closely held businesses have a $1.3 million exemption. Its other provisions include an estate can pass tax free to the surviving spouse, and donations to charity are tax-exempted.

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