On August 2, 2006 the Senate turned away Republican-sponsored tax reform legislation that would have adopted a $5 million “applicable exclusion” for estate tax purposes beginning in 2010. This proposal had been approved by the House of Representives on July 28. In addition to increasing the exclusion, the proposed legislation would have made the estate tax rate equal to the rate of the income tax on capital gains, reducing it from the current maximum estate tax rate of 46% (in 2006) to 15% (or 20% after the current capital gain tax law expires).
It will take 60 votes in the Senate to get past a filibuster by those committed to obstructing this type of legislation.
Stay tuned. . . .