Why a Temporary Repeal?
A 2001 tax law scheduled a gradual reduction in the federal estate tax, with a full repeal taking effect on January 1, 2010. However, because of congressional budget rules, the law also included a sunset provision stipulating that the repeal could only last for one year. Proponents of repealing the estate tax apparently had no choice but to accept temporary measures until they could rally support for a permanent repeal. But that hasn’t happened, and there’s little evidence to suggest it ever will. In fact, the House and the Senate passed competing measures in 2009 to prevent the temporary repeal from taking effect, but the chambers could not settle the differences between their proposals before the year ended. The House legislation called for freezing the estate tax at its 2009 levels: a 45% tax rate on assets in excess of a $3.5 million exemption. But the Senate never took up the House bill and instead passed a budget amendment that provided for a $5 million exemption and a 35% tax ra
