It appears that a reported agreement between Senate Democrats and Republicans on an estate tax proposal has fallen apart. It now appears even more likely that we may actually return to a 55 percent maximum estate tax rate and $1 million exemption beginning January 1, 2011.
The details of the reported agreement have not been made public. However The Hill reports that there would be a 35 percent tax rate for estate in excess of $3.5 million, increasing to $5 million over time.
According to The Hill , Senator Jon Kyl (R-Ariz) said the deal broke down because of Senate Democrats' would not allow legislation to reach the floor that lacked the support of a majority of its members.
"We no longer have an agreement because the Democratic side has decided that unless a matter has a guaranteed majority of Democratic votes going in, they're not going to allow it on the floor, at least not voluntarily," Kyle said. "So we have to find a way to get a reasonable permanent estate tax reform to the floor where members can vote on it."
It now appears any estate tax reform will not happen any time soon and we face the very real possibility of a return to the $1 million exemption and 55 percent tax rates. Again, stay tuned.
For more details on the breakdown in click here for another article.
