Senators Lincoln and Kyl moved to commit H.R. 5297 to the Small Business Bill changing estate tax exemptions and rates. The amendment would cap the tax at 35% with a $5 million inflation-indexed exemption that will be phased in over 10 years. Currently, the estate tax is set to hit a 55% top rate with an exemption of $1 million in 2011. President Obama has proposed changing the tax to a top rate of 45% with a $3.5 million exemption. The Lincoln-Kyl amendment requires the loss in revenue from the Obama proposal to be offset.
House Lawmakers also seem to support language in the Senate's Small Business Bill that would extend bonus depreciation and section 179 expenses for an additional year. Those provisions were not passed in the House's version of the Bill.
See Sam Golfarb, Lincoln, Kyl to Offer Estate Tax Motion on Small-Business Bill, 2010 TNT 135-1 (July 14, 2010).
Posted by James G. Haskell, Associate Editor, Wealth Strategies Journal.
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