So with baseball season starting this week many are focused on whether the Yankees repeat? Here in Washington politicians are wondering whether this is the year the Nationals become competitive. Congress must be thinking about baseball because members don’t seem intent on solving the estate tax mess.
What is the latest? According to the Association for Advanced Life Underwriting (AALU), as of April 1, there are not enough votes in the Senate to pass a "permanent" estate tax bill. The Senate is the roadblock, with both the House and the Obama Administration agreeing that the exemption amount should revert to the 2009 law, when individuals could protect $3.5 million ($7 million for married couples who plan properly). Although there is no estate tax in 2010 (assuming Congress does not retroactively reinstate the estate tax), the exemption amount drops automatically to $1 million in 2011.
Could we again be limited to a $1 million exemption amount? What seemed improbable in 2009 is becoming more likely as the months pass. It does not bode well for taxpayers, particularly considering an article in the March 29, Daily Tax Report, which began: "The legislative picture in coming months is likely to be dominated by the need for revenue, as the budget deficit worsens and Congress seeks more funding to pay for ..."
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