Estate Tax Reform Still Possible

NEW YORK – Despite last week’s defeated Senate motion to consider the estate tax repeal legislation last week, chances for compromise weren't snuffed out, and reform legislation may still see the light of day, CNNMoney.com reported Monday.

"This won't be the last time this year the Senate votes on this important issue – be it on the floor or some other form," Senate Majority Leader Bill Frist, R-Tenn., an advocate of permanent repeal, said in a statement after the vote last Thursday.

According to Congress Daily, a publication of the National Journal, Senate Republicans have some legislative options if they want to move on estate tax reform this year. They could, for instance:

• Attach estate tax reform to the conference report on pension reform, which is still being negotiated and to which a "trailer" bill of tax breaks is also expected to be attached.
• Ask the House to vote on a compromise proposal that they're confident would garner 60 votes in the Senate. That's the number of votes required to prevent filibuster.
• Amend the House's bill on permanent estate tax.
• Amend the House's bill on the alternative minimum tax.

If there is to be a compromise that garners 60 votes, both sides of the aisle will need to reach consensus on the amount of an estate exempt from tax and the level of the tax rates that apply to the taxable portion of an estate.

-- NYSSCPA.org News Staff

Posted on 6/12/06

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