Politics Holding Up Estate Tax Measure
Grassley says action on estate tax needs to be taken soon.
Compiled by staff
Published: Jun 7, 2010
A number of farm groups have been calling on lawmakers to fix the estate tax before it reverts to a $1 million exemption and 55% top tax rate. However, Senator Chuck Grassley, R-Iowa, says there are still problems on the road to estate tax legislation, although he says there is bipartisan support for a bill crafted by Senators Blanche Lincoln, D-Ark., and Jon Kyl, R-Ariz.
"This bipartisan bill would make a permanent tax rate of 35% and an exemption of $5 million with a stepped up basis," Grassley said. "This legislation would help 90% of the small businesses, farmers and others impacted by a change in law on January 1. While this bill has broad support we don't know if this is the route that will be taken."
That's because Grassley says Senate Majority Leader Harry Reid, D-Nev., hasn't given a clear direction for considering the Lincoln-Kyl measure, so it's uncertain how the process would work out. What is clear Grassley says is it's coming down to the wire and something needs to happen before the law reverts back to 2001 levels.
Then tens of thousands of small businesses and farmers are going to be negatively impacted, Grassley said. "I hope that the Democratic leadership will soon reveal their hand so that these thousands of small businesses and farmers aren't hung out to dry."
If Congress is headed in that direction, Grassley says he expects a tremendous upheaval at the grassroots level.
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