They Said It Couldn’t Happen

Effort to Extend Estate Tax Fails

According to a Wall Street Journal article at the Senate has failed to pass a patch to the estate tax laws that would have kept the estate tax from expiring in 2010. Apparently the Democrats favored keeping the 2009 levels in place (a $3.5 million exemption and a 45% tax rate) whereas the Republicans favored a $5 million exemption and a 35% top rate. It is possible that passage of a new law in 2010 will be made retroactive to January 1, 2010.
It appears that issues such as whether College Football should institute a playoff system may be deemed more important by our Congress than trying to address the issue of estate taxes. See

Stay tuned. Hopefully there will be some legislation early next year that will provide some certainty to the estate tax issue.