Thursday, January 26, 2006
Interesting article this afternoon from Bloomberg: Low-Rate Estate Tax, Not Repeal, "Best I Can Do," Grassley Says, by Ryan J. Donmoyer & Mike McKee:
Congressional Republicans don't have enough votes to extend a repeal of the estate tax beyond 2010 and may have to settle for a compromise that limits the levy to bequests of more than $5 million, Senator Charles Grassley said. "If we could get a $5 million exemption with a 15 percent rate, I think that would be a decent compromise," Grassley, an Iowa Republican who heads the finance committee, said in an interview . "That's not going to satisfy the president, but I think that that's the best I can do in the United States Senate in order to get the votes to get it passed."
Republican leaders including Arizona Senator Jon Kyl and Majority Leader Bill Frist were forced to postpone a vote on permanently abolishing the tax in July when Hurricane Katrina devastated the Gulf Coast. Republicans said they were worried about creating the perception they were cutting taxes for wealthy families while mostly poor hurricane survivors struggled.