Senators Near Deal to Eliminate Estate Tax for All but the Richest

WASHINGTON -- Senators are nearing a compromise that would permanently wipe out estate taxes for all but the very wealthiest Americans, The Wall Street Journal reported Wednesday.

Republican and Democratic senators say they are increasingly confident that they can iron out details to reach a compromise changing the estate tax by the end of the summer -- and win enough Democratic votes to avoid a filibuster on the Senate floor. A Senate Republican staffer close to the talks said key players have agreed on rough parameters.

House Republicans have voted to make the repeal permanent for everyone in each of the last sessions of Congress, but the legislation has died in the Senate for want of the 60 votes needed to stop a filibuster. Any compromise measure that would clear the Senate is almost certain to be passed by the House.

According to aides close to the Senate talks, Republican and Democratic negotiators so far have agreed to dramatically and permanently lower the estate-tax rate beyond 2010 and boost the amount per person that is exempt from taxes to more than $3 million. By contrast, the personal exemption was $1 million in 2001, and this year is $1.5 million.

-- NYSSCPA.org News Staff

Posted on 6/22/05