Yesterday, there were two great recommended diaries on the estate tax. Thing are moving fast and furious on this front. It is widely believed that there isn't a lot of solid support in the Sentate for full estate tax repeal due to the budget impact... alot of the fiscal conservatives really are having problems swallowing the revenue hit. There is concern that it is not filibuster proof, and so many believe the possibility of a compromise is real--but what will the compromise be?
According to my daily tax service (BNA Daily Tax Report, by subscription, sorry), Senator Baucus is floating a compromise that "threatens to complicate the already complex process by which the Senate will take up estate tax repeal next week and settle on a relief deal that can win 60 votes."
BNA reports that the Baucus proposal includes "a progressive tiered approach that would impose a higher estate tax rate on larger estates, with the top rate at 35 percent" and an exemption of $3.5 million per person.
This is competing with a Kyl proposal to raise the exemption to $5.0 million with a 15% rate, the same as the capital gains rate. Kyl thinks he's close to 60, but he doesn't have it yet, and the Baucus proposal will probably pull back some Dems that wanted cover.
The drama continues....