Post by CMF Newsman on Jul 26, 2012 5:48:03 GMT -5
WASHINGTON — As the Senate headed toward a symbolic vote Wednesday on legislation to extend some of the Bush administration tax cuts, estate tax policy became a focal point of the debate.
The Senate Democratic bill would continue the Bush tax cuts through 2013 for households earning less than $250,000 annually but allow them to revert to pre-2001 levels for those above that threshold, following along the lines of a policy backed by President Barack Obama.
The measure doesn't address estate taxes, which are set at 35% with a $5 million exemption. If the Bush cuts expire at the end of the year without congressional action, the estate tax would increase to 55%, with a $1 million exemption.