The package also includes income tax rate cuts, reduction of the marriage penalty and increased breaks for tuition and pension savings. The tax changes were signed into law by President Bush June 7.

The estate tax phase-out will occur over 10 years. The unified credit exemption will increase from $675,000 to $1 million in 2002, $1.5 million in 2004, $2 million in 2006, and $3.5 million in 2009. The highest tax rate will drop to 50% (from 55%) in 2002. After the phase-out is complete, capital gains taxes would be owed if the property were sold.

There will be no estate taxes in 2010, but they will "sunset" and return in 2011.

The newspaper business has long opposed the estate tax saying it destroys family businesses since heirs must sell to meet tax bills and it forces spending on insurance policies and tax planning, according to Frank Blethen, publisher of The Seattle Times, who has helped organize anti-estate-tax forces.

"It’s a huge win," said John F. Sturm, president of the Newspaper Association of America.

"Too many family-owned newspapers have been extinguished to pay the tax," said Kenneth B. Allen, National Newspaper Association executive vice president and CEO. "Now publishers can learn and focus on building strong newspapers, instead of fearing a massive tax penalty when a loved one dies."