CONGRESSIONAL LEADERS OFFER ESTATE TAX COMPROMISE

News Date October 27, 2009

Last week, Representative Shelley Berkley (D-NV.) introduced legislation to address the burdensome estate tax by increasing the exemption, while at the same time, lowering the tax rate. Set to expire at the end of 2009, the estate tax currently exempts those with assets valued at less than $3.5 million and includes a tax rate at 45 percent. If nothing is done, there will not be an estate tax levied in 2010. However, the tax will quickly return in 2011 with an exemption level decreased to $1 million and the tax rate increased to 55 percent.

Representative Berkley’s legislation would increase the exemption to $5 million and decrease the tax rate to 35 percent. Realizing a full repeal of the tax may be politically impossible, several organizations representing farm groups and small business owners have lend their support for the bill. (Contact: David Hickey)