Senate Delays Vote on Estate Tax Compromise Plan
On June 22, 2006, the House
passed the Permanent Estate
Tax Relief Act of 2006 which
was drafted by House Ways
and Means Chairman Bill
Thomas (R-CA) as a form of compromise
after efforts for a full repeal went nowhere in
the Senate.
The compromise act proposes an increased
exemption to $5,000,000 from the current
$2,000,000, a reduced rate of 15% (30% for
amounts over $25M) as opposed to the
current (roughly) 45%, continuation of
stepped-up basis, the ability of a surviving
spouse to use the unused exemption of the
deceased spouse, and a tax reduction
associated with timber sales. Republicans
had hoped to vote on the measure prior to
Congress' July 4th recess, however, after
determining they were lacking enough votes
to pass the bill, Senate Majority Leader Bill
Frist (R-TN) opted for a postponement.
Source: www.SFGate.com, 6-23-06; SPCA
Tampa Bay GiftLaw, 6-26-06 &
www.MSNBC.com, 6-27-06
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