I know that the house passed a full repeal of the estate tax, and that the senate was 3 votes short. They watered it down to a repeal up to a limit but then the rest was taxed at the capital gains rate or something like that, along with a miniumum wage hike, and it still failed by 3 votes. Will the senate take it up again or is it likely to be fully repealed in 2010 and then come back in full force the next year?
2006-09-20 13:59:36 · 2 answers · asked by Tommy 2 in Business & Finance ➔ Taxes ➔ United States
I assume Republicans will take it up again if they win the midterm elections. Eliminating the estate tax is an irresponsible policy that would be difficult to support in an election year, and the loss in the Senate was probably symptomatic of what you can expect if it comes up again (as it wasn't voted on in an election cycle).
Issues like this are often brought up by House members who have to run every two years, so as to define themselves and rally their base. Unless a repeal is passed before 2010, the situation you mention will, in fact, occur, which makes me wonder if we'll have an abnormal death rate in 2010.
Hope this helps!
2006-09-20 14:50:16 · answer #1 · answered by Shofix 4 · 0⤊ 0⤋
I feel fairly confident that a middle ground will be approved prior to 2010. One that increases the estate limit and reduces the top estate rate. I don't feel there is any possibility of full repeal and almost as little possibility that they will allow the Economic Growth and Tax Relief Reconciliation Act of 2001 to "sunset" as it is currently written with rates returning to pre-2001 numbers in 2011.
Just my 2 cents.
2006-09-20 14:58:06 · answer #2 · answered by FlCpa 3 · 1⤊ 0⤋