Despite Senator Chuck Grassley's recent prediction that Congress would "solve" the federal estate tax uncertainty by reinstating a $3.5 million per person estate tax exemption before the end of 2010, others on Capitol Hill remain uncertain if or when Congress might act to prevent the federal estate tax exemption to revert to $1 million on January 1, 2011. Included in the Democrats proposal to extend the Bush era income tax cuts to those earning $250,000 per year or less was a proposal to reinstate the federal estate tax exemption at $3.5 million per person, indexed for inflation. In an effort to bridge the gap between the parties, Republican Senator John Kyl and Democratic Senator Blanche Lincoln have instead proposed a $5 million per person exemption. But as one Congressional observer was quoted in The Hill, “I hear all sorts of things, which means I hear nothing.”
For the complete article, click here.