We finally have some news to report. Senator Grassley was interviewed at the 2010 Farm Progress Show in Iowa. The recording of the interview is linked on the Agwired website. The Hill (reported by Michael O’Brien) has a transcription of the relevant part of the interview and quotes the following:
“If we go back to a million-dollar estate tax exemption, which is going to happen Jan. 1, we’re going to be selling a lot of farm land to pay estate taxes,” Grassley told AgWired. “And even at $3.5 million dollars, which I think is where we’re going to end up, it’s still going to be detrimental to some family farmers. But I think that’s where we will end up, and I think we’ll do it before the end of the year.” . . .
Grassley said, though, that lawmakers had no choice but to try and act this year.
“Sen. Reid sets the agenda for the United States Senate. He said that we’re going to be on taxes a couple weeks during September,” he said. “I think it’s driven mostly by the income tax expiring at the end of the year, so we get the biggest tax increase in history of the country if Congress doesn’t act. So I think Congress has to act.”
Hence, it appears there is at least some push to resolve the estate tax chaos before the end of the year and we get the estate tax back with only a $1,000,000 exemption. Note: the Senate Finance Committee oversees tax legislation in the United States Senate.
By Kevin Staker