California Estate Planning Blog by Kevin Staker

December 8, 2010

It Is Not Over Until It is Over

Filed under: estate tax,estate tax news,Kevin Staker — Kevin Staker @ 2:17 pm
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Senate Majority Leader Reid is saying he will bring the tax cut extension bill (by the way does it have a name yet?) to the Senate Floor as early as tomorrow.  However, he and other Democratic Senators have indicated they will try to change the estate tax component.  One would assume they want to lower the terms to the 2009 level, $3,500,000 exemption and 45 percent rate.  They could try to amend the bill once introduced.  Might be a close vote given the Democrats do have several votes presently over a majority.  If such an amendment were to pass, would be very interesting to see if Senate Republicans would try vote against the whole bill.  Doubt they would.  However, doubt such an amendment would pass.  Few Senators will want to be responsible for scuttling this deal.  Even very liberal Senator Harkin states the bill “will probably pass” as is in the Senate

Note.  Nancy Pelosi also calls the estate tax exemption and rate a “bridge too far.”  However, I doubt the House will amend the bill also.

Republican Whip Kyl whose pet project is this $5,000,000 exemption says a change is non-negotiable.

We shall see.  It ain’t not over ’til its over (popularly attributed toYogi Berra)

By Kevin Staker

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2 Comments »

  1. If they amend the estate tax portion to $3.5M, 45%, would that potentially be effective as of 12/2, as Baucus originally wanted it? Or would it be effective as of some later date, since this is a different bill?

    Comment by Ben — December 8, 2010 @ 7:10 pm | Reply

  2. Do not know. We shall see.

    Comment by kevinstaker — December 9, 2010 @ 8:29 am | Reply


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