Discussion of Action on the Estate Tax Continues to Percolate
Posted: Tuesday, July 20, 2010
On July 13, Senators Lincoln (D-AR) and Kyl (R-AZ) introduced a proposal to address the estate tax which would require H.R. 5297, a small-business lending bill awaiting Senate action, to be sent to the Senate Finance Committee, and require the committee to incorporate their proposal to permanently set the estate tax rate at 35 percent, with a $5 million per person exemption phased in over 10 years and indexed for inflation. It would also require the committee to find offsets for the cost of the proposal as compared to the Obama Administration’s preferred estate tax approach -- a 45 percent tax rate and a $3.5 million per person exemption. The Lincoln-Kyl proposal would allow estates processed this year to file under this year’s estate tax of zero percent or file under the new provisions.
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