Senate Resolution Would Increase Estate Tax Exemption

Senate Resolution Would Increase Estate Tax Exemption

News story posted in Legislative on 7 April 2009| 5 comments
audience: National Publication | last updated: 18 May 2011
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Summary

Last week the Senate passed a fiscal 2010 budget resolution that includes an amendment that would increase the federal estate tax exemption to $5 million, indexed for inflation, and cap the maximum estate tax bracket at 35%.
Amdt. No. 873 to S. Con. Res. 13

Full Text:

April 2, 2009


AMENDMENT NO. ________

Calendar No. _______

Purpose: To create a deficit-neutral reserve fund for estate tax
relief.

IN THE SENATE OF THE UNITED STATES
111th Cong., 1st Sess.

S. Con. Res. 13

AMENDMENT No. 873

Ordered to lie on the table and to be printed

AMENDMENT intended to be proposed by Mrs. LINCOLN
(for herself and Mr. KYL), Mr. Nelson of Nebraska, Mr. Grassley,
Mr. Pryor, Mr. Roberts, Mrs. Landrieu and Mr. Enzi

Viz:

At the appropriate place in title II, insert the following:

SEC. _____. DEFICIT-NEUTRAL RESERVE FUND FOR ESTATE TAX RELIEF.

The Chairman of the Senate Committee on the Budget may revise the allocations of a committee or committees, aggregates, and other appropriate levels and limits in this resolution for one or more bills, joint resolutions, amendments, motions, or conference reports that would provide for estate tax reform legislation establishing --

(1) an estate tax exemption level of $5,000,000, indexed for inflation,

(2) a maximum estate tax rate of 35 percent,

(3) a reunification of the estate and gift credits, and

(4) portability of exemption between spouses, and provided that such legislation would not increase the deficit over either the period of the total of fiscal years 2009 through 2014 or the period of the total of fiscal years 2009 through 2019.

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Comments

Senate Resolution to increase Estate tax

I have been to DC twice since April. Visited both sides, both houses and parties and what I am hearing from pretty much everyone is a one year extension of 2009 and they will worry about 2011 later

I'll believe it when I see it

Good point by Mr. Fulton. ... Two things seem conspicuous -- first, the "purpose" previously referenced, and second the word "may" in "The Chairman of the Senate Committee on the Budget may ...". Why not "shall"? So the Chairman must find a way to make these changes "deficit neutral" (no small task) and then he/she "may" do it? Then would it stilll have to pass the Senate and House (and be signed by the President)? Maybe somebody who is more informed on the procedural aspects can enlighten us but I for one am skeptical. Unfortunately I see estate tax "reform" this year being tagged on to the tail end of some massive legislation that nobody reads at the 11th hour. And flip a coin whether it is results in a higher or lower exemption and FET rates because at the end of the session estate taxes are going to just be another potential revenue source for lawmakers desparately trying to be "deficit neutral".

Senate Resolution to increase estate tax exemption

I think we need to consider the purpose of this legislation as stated the "Purpose: To create a deficit-neutral reserve fund for estate tax relief." Item 4 states"...and provided that such legislation would not increase the deficit...". It would seem to me that any decrease in revenues during these tough times would increase the deficit and therefore to be deficit-neutral additional taxes would have to come from somewhere else. You know what they say about gift horses.This resolution does not appear to me to be an actual reduction but as stated to "creat a resreve fund" to cover the lost revenue from this change if so passed. Any thoughts?

Estate Tax relief

The resolution contains this language. "(3) a reunification of the estate and gift credits" Would this make the gift exemption $5mm?

Increase of the Exemption equivalent credit to 5 million

I welcome this proposal. I hope that this proposal and the unification of the gift and estate tax becomes law before 2010. I want some legislation before 2010 to avoid the nightmare of stepped-up or stepped-down basis.

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