California Estate Planning Blog 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

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