Senate May Reform, But Not Repeal, Estate Tax

Senate Finance Committee leaders on both sides of the aisle suggested yesterday that a compromise may be emerging to reform, but not repeal, the estate tax.

Senate Finance Committee Chairman Charles Grassley R-Iowa) stated:

Taxwriters will be working quickly toward repealing the estate tax, or at least permanently raising the exemption level and lowering the rates. "We're going to be looking for a compromise to get 60 votes on because probably it's more important to have permanency in this area," he said.

Democrats appear willing to accept this compromise:

Although the majority of Democrats do not support a full repeal, talking points released on February 1 indicated they may be amenable to a compromise. "Democrats support reforming the estate tax so that small business men and women as well as farmers and ranchers aren't affected," the release read.

The full report also is available on the Tax Analysts web site as Doc 2005-2069, 2005 TNT 21-1.