Senate Fails to Act on Estate Tax
Washington--The Senate adjourned until Sept. 13 without addressing the estate tax issue.
If Congress fails to act before Jan. 1, estate taxes will be reinstated with a $1 million per person exemption and 55 percent top rate. Farm Bureau is supporting a proposal offered by Sens. Blanche Lincoln (D-Ark.) and Jon Kyl (R-Ariz.) to phase-in a $5 million exemption and 35 percent tax rate over 10 years. Stepped up basis is included in their proposal.
The bipartisan Lincoln/Kyl amendment offers the most estate tax relief and the best chance for passage with 10 Democrats already on record in support of the proposal from last year’s budget amendment vote. The purpose of Farm Bureau’s “Put Death Taxes to Rest” campaign is to secure the 60 votes needed to pass the Lincoln/Kyl proposal