Greenville Attorney: “Estate tax debates scheduled for September 2010?”
August 28, 2010
It is reported that Senator Harry Reid had proposed debates to be held in September 2010 on the future of the federal estate tax. It seems to me that the Democrats hold the leverage at this point, with the Republicans more inclined to give in on their side in order to avoid the automatic reinstatement of the federal estate tax at pre-EGTRRA levels, ie, a one million dollar exemption per estate with a maximum tax rate of 55%. However, with the midterm election looming and uncertainty as to the future constituency of the Congress, I doubt that any actual legislation will be announced in September.
President Obama’s 2011 proposed budget assumes that the estate tax law will include a three and a half million dollar exemption per estate with a maximum rate of 45%. It will be interesting to see where the law stands on January 1, 2011. I will post at midnight on January 1, 2011 to let you know. Stay tuned…..