Democrats Disagree Regarding Estate Tax

Although Finance Chairman Max Baucus (D-MT) and Minority Whip Jon Kyl (R-AZ) were previously in general agreement on a 35% rate and a $5 million exemption for the 2011 estate tax, any such agreement has since deteriorated. The Democrats have decided that unless a subject has a guaranteed Democratic majority from the start, they will not voluntarily allow it on the floor. Currently, an estimated 20% of Democrats support the 35 percent/$5 million plan while others support a 55 percent/$1 million plan.

Senate Finance Republicans are irritated by the unsettled issue. “It’s very frustrating because we thought we had a deal,” said Senator Orrin Hatch (R-UT). “We thought we put it together in a way we thought was acceptable, and the Democrats are backing off on resolving it.”

Senate Disagreements Stymie Any Deal on Estate Tax, NACS Online, May 20, 2010. 

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