WASHINGTON, DC — Despite several organizations within the hvacr industry giving the bill its support, President Bill Clinton recently followed through with his promise and vetoed the repeal of the so-called death tax, an 84-year-old tax passed to help finance American participation in World War I.
The legislation, which cleared the House of Representatives in June and the Senate a month later, would have gradually phased out federal estate and gift taxes, ending in a full repeal in 2010. Currently, the first $675,000 is exempt from taxation, but the remainder of the estate is subject to a marginal tax that can go as high as 55%.