Permanent Estate Tax Bill Placed On Calendar in Senate; States May Be Trying to Head Off Expected Problems

Permanent Estate Tax Bill Placed On Calendar in Senate; States May Be Trying to Head Off Expected Problems


On January 20, 2010, the Senate read H.R. 4154 for the second time and placed it on the Calendar as Number 253. The Permanent Estate Tax Relief for Families, Farmers, and Small Businesses Bill of 2009 would permanently extend the estate tax at 2009 exemption rates. The bill would impose a 45 percent tax on estates above $3.5 million per individual and $7 million for married couples. As of February 5, 2010, no further Senate action has been taken.
 
The White House appears to be counting on the Bill passing according to CCH which notes in Tax Briefing: FY2011 Federal Budget – Tax Proposals that the President’s baseline budget assumes a reinstatement of the estate tax at 2009 levels. 
 
Meanwhile, Forbes.com reported on February 3, 2010, that some states are anticipating expensive court battles because of the repealed estate tax and introducing emergency bills to try and remedy the problem. Virginia, Maryland, Nebraska, South Dakota, Tennessee, Washington, Florida and New York are among the states who are working on some kind of emergency legislation.