Republican Estate Tax Reform Proposal Fails in Senate
H.R. 5297, 111th Cong., 2d Sess. (2010), a House-passed small business tax relief bill, was the subject of a motion to recommit made on July 13 by Senators Kyl (R-Ariz.) and Lincoln (D-Ark.). Their proposal, which was rejected by Senate Democrats, would have made the following changes:
- Reinstate the estate tax with a top rate of 35 percent, phased in from 45 percent over ten years;
- Reinstate the GST tax with a flat rate of 35 percent, phased in from 45 percent over ten years;
- Set the estate tax and GST exemptions at $5 million, phased in from $3.5 million over ten years;
- Reinstate the estate tax value basis for property received from a decedent;
- Grant the personal representative of the estate of a decedent who dies in 2010 an election to apply the new rules or the existing 2010 rules (no estate tax, no GST tax, and a modified carryover basis).
This amendment did not include details of these proposals, nor did it include an effective date for the reimposition of the estate and GST taxes.
On July 20, Senator Sen. DeMint (R S.C.) proposed an amendment that would have permanently repealed the estate and GST taxes. It, too, failed to be added to the bill.
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