California Estate Planning Blog by Kevin Staker

August 24, 2010

Nothing to Report

Filed under: estate tax,Kevin Staker — Kevin Staker @ 5:49 pm
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This author searches the Internet several times a day for any news re the estate tax worthy to report. I find it interesting there has been nothing worth reporting since August 4th. Congress being out of session most likely is the cause. Hopefully there will be something worth reporting when they return in a couple of weeks

By Kevin Staker

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August 4, 2010

Encouraging News: Majority Leader Reid Intends to Bring Tax Issues to Senate Floor in September

Filed under: estate tax,Kevin Staker — Kevin Staker @ 9:56 pm
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Andrew Bolton at the Hill reports that the spokesman for Senate Majority Leader Harry Reid has announced that Mr. Reid intends to bring the issue of the Bush tax cuts to the Senate Floor in September.  One has to appreciate his courage in doing what is right: making the Congress face up to this issue and go on record before the November elections.  These tax issues, of course, include what to do about the estate tax.

In a later post, we will take a look into the crystal ball and try to predict the outcome.  A preview – he must think he will have the votes to uphold the Democrats’ position:  extend income tax cuts for all except the higher income folk and raise the estate tax exemption to only $3,500,000.  Otherwise, he would not waste the time and effort.

The article can be found at http://thehill.com/homenews/senate/112641-reid-plans-september-showdown-on-bush-tax-cuts?page=3#comments

By Kevin Staker

August 2, 2010

Excellent Analysis at Bloomberg on the Present Politics of the Estate Tax

Filed under: estate tax,Kevin Staker — Kevin Staker @ 1:46 am
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You may or may not agree with his opinion.  However, Albert R. Hunt at Bloomberg has an excellent analysis of the political situation in Congress on the estate tax. He believes Congress will address the issue in mid-September when they return from their recess.   (The House went into recess last Saturday, Senate will go on its recess this coming Saturday.)

Mr. Hunt believes the Democratic proposal to have a $3,500,000 exemption will win out over the proposal of some Republicans of a $5,000,0000 exemption.   This author agrees that the $5,000,000 simply will not happen.  Senate Majority leader Reid has made clear he will not allow it.

This author, moreover, believes there are 50-50 odds between a $3,500,000 exemption and only a $1,000,000 exemption.  In other words, there is a significant chance the two parties will not agree on anything and we will end up with the default of inaction, a $1,000,000 exemption.

The article is located at http://www.bloomberg.com/news/2010-08-01/democrats-relish-fight-over-big-income-tax-cuts-commentary-by-albert-hunt.html

By Kevin Staker