Timber Becomes Tool in Effort to Cut Estate Tax

By Edmund L. Andrews
The New York Times

Wednesday 21 June 2006

Washington - In a new attempt to permanently reduce the estate tax on inherited wealth, House Republican leaders moved on Tuesday to win over crucial Democrats with a tax sweetener for timber companies.

Admitting that Congress would not be able to abolish the estate tax this year, House leaders unveiled a compromise that would stop just short of full repeal and would give the Senate another chance to take up the issue.

The latest proposal would eliminate the tax for all estates worth less than $5 million - up to $10 million for couples. That would cover more than 99.5 percent of estates, according to Congressional estimates. In addition, the compromise would reduce the tax rates on the few estates that would still be subject to a tax.