WASHINGTON -- A U.S. estate tax bill is in the works and may arrive soon on the floor of the United States' House of Representatives, lower house Democratic Leader Steny Hoyer said on Friday.
"We would like to bring to the floor in the next few weeks, if not next week, a bill to deal with the estate tax issue," Hoyer said on the floor in discussions about the House's upcoming schedule.
The estate tax imposes a tax on the transfer of the assets of a deceased person to others. Known also as an inheritance tax, it has been a political flashpoint in recent years.
He said Democratic leaders have been working with the tax-writing House Ways and Means Committee on legislation.
"If we don't act on the estate tax there will be a great cost next year," he said.
Hoyer added the bill will likely address Democrats' pay-as-you-go, or "pay-go," pledge to ensure that new spending or tax changes do not add to the government's budget deficit.
"We will probably have, either in the bill or by rule, we'll adopt statutory pay-go which we pledged to do in our budget ... and it will be compliant," Hoyer said.
The rules for estate taxes must be renewed by the end of 2009. The current policy exempts from tax the first $3.5 million in an estate for an individual, with a maximum tax of 45 percent on property above that.
Many believe the current policy will be temporarily extended. This is considered must-pass legislation because without action, the tax will disappear entirely in 2010.
After 2010, the tax reverts back to pre-2001 levels exempting $1 million in property, with a maximum rate of 55 percent above that.
"We need to address the uncertainties surrounding the cliff, if you will, on the estate tax," said Representative Eric Cantor, a Republican leader, in floor discussion with Hoyer.
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