Estate Tax Repeal Legislation Passes U.S. House, Goes to Senate

April 13 (Bloomberg) -- The U.S. House of Representatives voted to repeal a tax on inherited wealth, sending to the Senate a bill that would cut up to $290 billion in government revenue during the next 10 years.

The House approved the measure by a 272-162 vote. In the Senate, Republicans and Democrats are working on a compromise plan that would raise the exemption levels for the tax. President George W. Bush called for repeal of the nine-decade-old tax in his 2006 budget proposal.

House Republicans are pushing to make permanent a measure passed in 2001 that phases out the estate tax, eliminating it completely in 2010. The tax returns in 2011 at its original level, with estates worth more than $1 million taxed at up to a 60 percent rate. The bill's sponsor in the Senate, Arizona Republican Jon Kyl, said he doesn't know if he has the 60 votes needed for it to pass. [more]