When the U.S. House of Representatives passed the Death Tax Repeal Permanency Act of 2003 on June 18, there was a collective cheer among many of the country's family business owners. Now, the bill moves to the Senate.

Under the current law, which was enacted in 2001, the estate tax will gradually be reduced until it is entirely repealed in 2010. But the tax will return in 2011, when the entire estate tax cut expires. Because estate tax laws can influence the designation of heirs of business property and the operation of businesses, this uncertainty in the law makes it difficult for small business owners to plan their estates.

The National Association of Home Builders (NAHB), Washington, D.C., is among many organizations representing small business that support the bill. “The estate tax has placed a burden on the heirs of family-run home-building companies who, in some cases, have had to liquidate their assets to pay the tax. The death tax is a threat to the future viability and growth of family-owned businesses,” said Jerry Howard, executive vice president and CEO of NAHB.

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