Friday, December 10, 2010
Just in from Capitol Hill
Passage of Estate Tax Provisions Expected
Washington--Despite opposition by many Democrats, passage of estate tax provisions included in the tax framework laid out by President Barack Obama and congressional leaders is likely, according to the Wall Street Journal.
Support for the estate tax provisions appeared stronger in the Senate, particularly among incumbents facing re-election in 2012. However, it is expected there will be enough Democratic centrists in the House to join with Republicans and pass the tax bill with the estate tax provisions included.
“It’s not going to be changed,” said Sen. Jon Kyl (R-Ariz.), an author of the estate tax provision. Farm Bureau is pushing for passage of provisions that include an estate tax rate of 35 percent with an exemption of $5 million for individuals. Without action by Congress this year, the estate tax will return next year to its pre-2001 levels, with a $1 million exemption level and a 55 percent tax rate.