STATUS OF DEATH TAX REPEAL
This is what happened last night with all of the votes in the Senate.
The budget resolution (S. Con. Res. 13) includes $825 billion in tax relief including extending the 2001 and 2003 tax cuts for the middle class; extending alternative minimum tax relief; and making permanent the 10 percent income tax bracket, the child tax credit, and marriage penalty relief. It also assumes a permanent extension of the tax code Section 179 expensing rules and an expansion of net operating loss carryback provisions.
The underlying resolution would freeze the estate tax at its current level, with an exemption amount of $3.5 million and a maximum tax rate of 45 percent, but the Senate adopted two conflicting amendments, putting the chamber at odds with itself and with the House.
It first voted to increase the exemption amount to $5 million while dropping the maximum rate to 35 percent but then voted to create a point of order against any estate tax legislation beyond what is assumed in the underlying resolution unless it provides an equal amount of tax relief to taxpayers earning less than $100,000.
The House resolution (H. Con. Res. 85) contains language allowing the estate tax to be overhauled at a five-year cost of up to $72 billion if the House also has considered legislation to reinstate statutory pay-as-you-go budgeting.
These issues to be worked out in conference.
We will keep you informed as this all plays out!
Stay tuned and thank you for your support.
Patricia M. Soldano