Senate Republicans Compromise on Estate Tax Exemption

In the recent article "Senate eyes compromise on estate tax," New York Post columnist Josh Kosman reports that Senate Republicans, rather than holding out for repeal, are working with Demotracts on a compromise estate tax bill that appears to be converging on a $ 5 million exemption. The parties disagree on the applicable rate that will apply above this exemption; Democratic lawmakers have proposed a rate of 45%, while Republicans support a 35% rate. If the parties cannot agree, the 2013 exemption will fall to $1 million with a 55% applicable rate.

Posted by Isaac Pflaum, Managing Editor, Wealth Strategies Journal