Future of the Federal Estate Tax Still Uncertain Even After Midterm Elections

The American Family Business Institute sees the midterm election as a victory because there is now a pro-estate-tax-repeal majority in Congress for the first time in six years. The Death Tax Repeal Pledge, which is AFBI’s project, has 119 supporters in the House and 12 supporters in the Senate. AFBI predicts that 245 representatives and 49 senators will vote for repeal.

However, United for a Fair Economy is still optimistic that the estate tax will not be repealed. The Senior Organizer of UFE stated that although more anti-estate tax legislators were elected, there are still not as many as there were in Congress under President Bush. The estate tax wasn’t permanently repealed then, so UFE doesn’t think it will be now.

“The results of the midterm elections do not bring certainty to the federal estate tax. Although 49 Senators are likely to vote for repeal, 60 votes are needed to repeal the estate tax.” 

Hani Sarji, Results of Midterm Election Do Not Bring Certainty to the Federal Estate Tax, Estate of Confusion, Forbes, Nov. 10, 2010.

Special thanks to Jim Hillhouse (WealthCounsel) for bringing this to my attention.