President indicated wants settlement of income tax cut extension. Republicans would seem to be less motivated. Yesterday in an op-ed piece in the Washington Post, the Republican leaders in Congress indicated they did not view the tax fixes as needing to be done in 2010 but could wait until 2011. However, they have now stated (rather smart politically) they will not let any other legislation pass in the Senate until the income tax cut extension issue and a continuing resolution on spending are resolved.
The representatives of the President and both parties in Congress began meeting today to discuss the tax issues. (Their terms “cordial” and “productive” are not overly encouraging.) If they reach an agreement, it will surely address the estate tax (along with a number of other issues, this will be like the saying, you do not want to see how sausage or acts in Congress are made).
Hence, I am raising the odds of an estate tax fix back to 50-50. Should be 80 percent favorable but the Republicans may overplay their hand and no agreement may be reached.
By Kevin Staker