ESTATE TAX VOTE EXPECTED LATER THIS WEEK
News Date December 01, 2009
Democratic leaders in the House of Representatives are expected to have a vote this Thursday on legislation to make the current estate tax exemption permanent. The bill, the Permanent Estate Tax Relief for Families, Farmers and Small Businesses Act of 2009 (H.R. 4154), which was introduced by Rep. Earl Pomeroy (D-ND), would permanently extend the current exemption amount of $3.5 million ($7 million for a married couple) and the maximum tax rate of 45 percent. Without this change, the estate tax exemption would be repealed for 2010, and then revert to an exemption of only $1 million and maximum tax rate of 55 percent in 2011. It is anticipated the legislation will be included with the Statutory PAYGO Act of 2009 (H.R. 2920), a bill to require Congress to provide funding for any new spending. This coupling may help for passage in the House, however, it could provide for heated debate in the Senate.
Another proposal to permanently extend the estate tax is still being discussed in Congress and has received support from the American Farm Bureau Federation, a group that has fought for a full repeal in past years. The legislation (H.R. 3905), which was introduced by Rep. Shelley Berkley (D-NV) in the House and is supported by Sen. Blanche Lincoln (D-AR) and Sen. Jon Kyl (R-AZ), would increase the exemption level to $5 million and decrease the maximum tax rate to 35 percent. This proposal, unlike H.R. 4154, would be indexed for inflation. (Contact: David Hickey)