Estate Tax Compromise Faces Uncertainty
According to an article published recently in the Washington
Post, the already shaky efforts to reach a compromise in the Senate on estate
tax repeal may be facing another earthquake.
As Senators Kyl (R-AZ) and Baucus (D-MT) seek to iron out
their differences and find a compromise deal that Senators on both sides
of the isle will vote for, the Senate Majority Leader's office has
announced Sen. Bill Frist (R-TN) intends to push for consideration of a
bill that would permanently repeal the estate tax. While Republicans concede
it is unlikely such a bill would pass, it would force Senators who vote
against it to take a big political risk, considering most polls show that
a majority of Americans, especially in predominately rural states, favor
estate tax repeal.
Sen. Charles Grassley (R-IA), leader of the Senate Finance
Committee, has said he felt "a little anxious" when he heard Sen.
Frist intended to push for the vote.
Grassley said, "I think if we push to have a vote without
having a compromise, it could be the end of the estate tax for this year."
As it stands, Sen. Kyle and Sen. Baucus have been unable to
reach a compromise. When last our office heard, Sen. Kyl wanted to set the
exemption for estates at $8 million and the estate tax rate at 15%. Sen.
Baucus wants to see a significantly lower exemption and a higher tax rate.
We are following this issue closely and will report any new
numbers or developments as they become available.
Source: The Washington Post, 7-25-05
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