This author is still trying to come to grips with the surprise of a $5,000,000 exemption. Certainly great for my estate planning clients.
There is a great analysis at Politico.com on the back story of how this all came about. Confirms my posting yesterday that the Administration had to give on the pet project of the estate tax of Senator Kyl to get the refundable tax credits for low income families that the President so strongly desired.
The Democrats in Congress are particularly furious about the estate tax compromise. However, there will not be enough votes to stop it. All the Republicans and enough of the Democrats will support to pass.
Question, however, what will future generations think when they are having to pay back all this money we will be borrowing? On the other hand, all these tax breaks, especially the 2 percent payroll tax reduction, will be a good stimulus for the economy.