Dick Lugar: “I am pleased to introduce three bills aimed at eliminating the burden that estate and gift taxes place on our economy.…”

“I am pleased to introduce three bills aimed at eliminating the burden that estate and gift taxes place on our economy. My first bill would repeal the estate and gift taxes outright. My second bill would phase out the estate tax over 5 years by gradually raising the unified credit each year until the tax is repealed after the fifth year. My third bill would immediately raise the effective unified credit from $600,000 to $5 million in an effort to address the disproportionate burden that the estate tax places on farmers and small businesses. I believe the best option is a simple repeal of the estate tax. I am hopeful that during this Congress, as Members become more aware of the effects of this tax, we can eliminate it from the Tax Code. However, even if the estate tax is not repealed, the unified credit must be raised. The credit has not been increased since 1987 when it was established at the $600,000 level. Since then, inflation has caused a growing percentage of estates to be subjected to the estate tax. My second bill is intended to highlight this point and provide a gradual path to repeal. Finally, my third bill focuses on relieving the estate tax burden that falls disproportionately on farmers and small business owners. By raising the exemption amount from $600,000 to $5 million, 96 percent of estates with farm assets and 90 percent of estates with noncorporate business assets would not have to pay estate taxes, according to the IRS.”