Amazing how Mr. Boehner failed to count his own votes before he proposed his “Plan B”. Plan B was just a political stunt so the Republicans could say they wanted to keep nearly everyone’s taxes low. He failed.
I believe the most likely scenario is that the House will adopt the Middle Class Tax Cut Act before the end of the year. The Senate will not have enough time to pass anything new.
Ironically, it will be with all the Democrats voting in favor and enough Republicans to get a majority. (Most Republicans will vote no so they do not give ammunitiion to a Tea Party opponent in their next primary (See the fate of former Senator Bennett from Utah).
Hence, President Obama will have won the battle. Gotten his way without any concession to the Republicans. Pretty Amazing. Horrible negotiating by the Republicans.
The Act does not address the estate tax issue. Hence, we would go back to $1,000,000 exemptions. However, I do believe some time in 2013, when the Republicans do force some entitlement reductions, the exemptions will be retroactively (to Jan. 1) increased to $3,500,000 to even over $5,120,000.
We shall see.
Estate Tax News Blog