This was reported today (Reuters via Talking Points Memo).
Two senators are proposing reinstating estate tax -- Blanche Lincoln & Jon Kyl.
http://www.talkingpointsmemo.com/...
and their proposal is a 35% tax on estates of more than $5 million.
Reuters goes on to say that the lack of action in the past year on reinstating the estate tax means that there are no estate taxes in 2010. Steinbrenner's estate, as an example, will pay no estate taxes.
Cboydlv had an interesting diary on this yesterday, but it got little attention:
Respectfully, Steinbrenner passing should require Estate Tax Debate
So far I get it, though I'm surprised that Kyl & Lincoln would propose any estate tax. (I'm sure Kyl refers to estate taxes as "death taxes" brought on helpless billionnaires by the evil "Democrat" Congress).
Then this is the last line of the Reuters article:
Without action, under current law the tax will rise to 55 percent, with an exemption level of $1 million.
So if I'm reading this right -- in 2010 there was no estate tax, but thereafter, it reverts to the much higher level of taxes on a much lower ceiling of exemption.
So, from my point of view, no action at this time is the best option (since we probably can't do anything about 2010).
Note to billionaires: die this year so your heirs can get away without paying any federal taxes!