The Real Deal Miami

Fate of estate tax unclear

August 13, 2009 02:33PM

As the deadline to create a permanent estate tax rate looms, democrats are scrambling to prevent a one-year repeal of the tax. According to the Wall Street Journal, House Democrats are likely to propose a one-year extension of the estate tax’s 2009 rates as a bipartisan senatorial committee grapples over the rate adjustment. One WSJ source, a House finance committee aide, said that there is still hope that the issue will be resolved before time has run out. The aide said that Senate Finance Committee Chairman Max Baucus “recognizes addressing the estate tax in the coming months is a must-do proposition, and he and Finance staff are using the August work period in part to explore ways to tackle the issue in the most complete and permanent way possible.” Currently, $3.5 million of estate wealth is tax exempt. After that, all other wealth is taxed at a rate of 45 percent.