New Year to Kick Off with No Estate Tax
With the Senate working almost around the clock on health care reform, the chamber has had precious little time to address practically anything else. One casualty of the busy legislative schedule seems to be any modification to the estate tax. Senate Majority Leader Harry Reid, D-Nev., last week sought unanimous consent in the Senate on H.R. 4154, permanent estate tax relief with statutory pay go, which was passed by the House earlier this month. Failing to get the support he was seeking, the Senate will now almost certainly adjourn for the year without addressing the tax. The result could be a one year full repeal in 2010 – the first time since 1916 that there will be no estate tax levied on American families. However, there also is a possibility that Congress could enact a retroactive tax when they return in January.
Notwithstanding the possibility of retroactive action by Congress next year, there is urgency from the business community to address the estate tax issue since in 2011 the tax will emerge with a $1 million exemption and a rate of 55 percent. However, AAIA believes that the one-year repeal represents a strong opportunity to continue to fight the estate tax and obtain a bill that would reduce the burden of the estate tax on our members.