Articles

Ray Vogliano passes along the following. If this were a table game at our new Pittsburgh Casino, I think I would ask for a new deck!

Kyl Says Estate Tax Deal Has Fallen Apart

Posted May 18, 2010, 1:01 P.M. ET

Senate Minority Whip Jon Kyl (R-Ariz.) said May 18 that a bipartisan group of senators are no longer close to a deal on the substance of a proposal to deal with the expired estate tax.

“We had an agreement on the substance of the proposal, subject only to certain offset limitations; other than that, we were in agreement,” Kyl said before the Senate Republicans' weekly luncheon. “I'm not sure that that agreement still exists.”

Speaking May 11, Kyl had said that he, Finance Committee member Blanche Lincoln (D-Ark.), Finance Committee Chairman Max Baucus (D-Mont.), and ranking member Charles Grassley (R-Iowa) had reached an agreement on moving forward. Lobbyists said they believed the deal would result in a top tax rate of 35 percent with a $5 million exemption level for individuals ($10 million for couples), with both figures indexed for inflation.

Asked May 18 about whether he prefers a retroactive proposal, or one with a choice for 2010, or an option to prepay, Kyl would only say that he believed there was an agreement one week ago and “that may not be the case anymore.”

Baucus agreed, saying, “There is no agreement on the estate tax in either substance or process. None whatsoever.”

Kyl also said a legislative vehicle and the timing for consideration are still up in the air.

Full news reports on today's Daily Tax RealTime™ updates will appear in the next edition of the Daily Report. Text of all documents referenced here will be published in the accompanying edition of TaxCore®. Document links remain active for one week.

Please read the important information relating to tax advice at the bottom of this web page.

Best regards,
Bob Wolf, Moderator

“Any tax advice in the foregoing message was not intended or written to be used, and cannot be used by any person for the purpose of avoiding tax penalties that may be imposed with respect to the matters addressed. Some of that advice may have been written to support the promotion or marketing of the transactions or matters addressed within the meaning of IRS Circular 230, in which case, be advised that the advice was written to support the promotion or marketing of the transaction(s) or matter(s) addressed, and you should seek advice based on your particular circumstances from an independent tax advisor.”