Jun 1, 2010
Estate Tax
Background:
Senators Blanche Lincoln (D-AR) and Jon Kyl (R-AZ) continue to work on an estate tax package that would include a higher exemption and lower rate. This requires the senators to identify means of raising federal revenue to make up the revenue loss associated with this plan. They have been in intense negotiations to work out a compromise deal that would get the approval of Senate Finance Committee Chairman Max Baucus (D-MT) and Ranking Member Charles Grassley (R-IA). Though several sources had indicated that a deal was shortly forthcoming, it appears as though the process has hit yet another roadblock.
It is likely that discussions on the estate tax will continue, but less publicly. As Congress continues to debate how to address the estate tax, ACR staff will closely follow these discussions, due to concern that foundations could be used as a “pay-for” for any eventual estate tax legislation.