The Senate Budget Committee in a party line vote approved a budget showing the estate tax returning to the law as it stood in 2009. They assume Congress and the President would change the law and not allow the exemption to go down to $1,000,000 on January 1, 2011 and the maximum rate to go to 55 percent. Instead they project the exemption will be $3,500,000 and the top rate 45 percent, and they are budgeting for such change to exist for the next two years.
Their committee will not decide such changes. Such changes must come from the Senate Finance Committee. However, they are a fairly savvy committee. Hence, we can see there is some movement in Congress towards not letting the exemption fall to $1,000,000 when the estate tax returns in 2011.
By Kevin Staker