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Estate Tax Reform Update
Dear Supporters:
Following passage by the House last week of a permanent extension of 2009 law, attention has now turned to the Senate, where the chamber continues to focus increasingly precious floor time on health care reform. With little more than a week to go before the end of session, we are pushing hard on legislative leaders to work out an agreement that will provide permanency and certainty without increasing the burden on families.
Late this week, Senate Finance Committee Chairman Max Baucus (D-MT) and House Majority Leader Steny Hoyer (D-MD) indicated that they may seek to avoid the year of repeal in 2010 by simply extending the estate tax at current levels for only one year as part of a massive, end-of-session defense appropriations bill. Because the defense appropriations bill would likely include, in addition to funding for U.S. troops, extensions of critical federal programs such unemployment insurance, COBRA and food stamps, it is considered "must do" legislation. Moreover, Senate leadership is expected to utilize parliamentary procedures that would severely limit our ability to gain a floor vote on any positive amendments, such as the Lincoln/Kyl or Berkley/Brady proposals.
With the House planning to depart on Friday (December 18), it has also become possible that the tax may expire in 2010 as currently scheduled, but legislative leaders are already indicating that they would move to retroactively apply the estate tax despite the terrible compliance nightmare it would cause families. The Senate is likely to stay through December 23.
We are discussing with our Senate supporters contingency plans in the event the one year extension is enacted, including a formal colloquy on the floor of the Senate in which legislators clearly indicate the chamber's intent to deliver meaningful and permanent reform in 2010 and avoid the return of a higher 55% rate and lower $1 million exemption in 2011.
Thank you for your continuing support and we will keep you apprised.
Sincerely,
Jeff
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