Senate Finally Moves on the Death Tax

Curtis Dubay / July 14, 2010

Almost seven full months into 2010, the Senate might finally get around to addressing the death tax. The death tax expired on January 1 of this year, but because of a quirk in the budgeting process it will rise from the ashes in 2011 with a punitive 55 percent rate and less-than-generous $1 million exemption level unless Congress acts soon.

The long delay in the Senate has lead many to conclude that Senate Majority Leader Harry Reid (D–NV) does not want to address the death tax at all this year because he wants the death tax to come back at those punishing rate and exemption levels. The economy cannot afford for the 55 percent rate and $1 million exemption at any time, but now, in its badly weakened state, is an especially bad time.

Senators Jon Kyl (R–AZ) and Blanche Lincoln (D–AR) are thankfully unwilling to see that happen. They will file an amendment that extends the death tax permanently with a 35 percent rate and $5 million exemption (indexed for inflation) to the small business bill the Senate is currently debating. (more…)