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Estate Tax Reform - Proposed Legislation

With the estate tax expected to sunset for one-year in 2010 before returning in 2011 at pre-tax cut levels, several members of Congress have introduced pieces of legislation to address various aspects of the tax, including its scope, rate, exemption level, and permanence.

• S 722 – Introduced by Sen. Max Baucus (D-MT) – Would extend 2009 estate tax rates permanently, index the exemption for inflation, and unify the estate and gift taxes.
• S 2784 – Introduced by Sens. Thomas Carper (D-DE) and George Voinovich (R-OH) – Would extend the 2009 estate tax rates permanently (45% rate; $3.5 million individual exemption) and index for inflation.
• HR 4154 – Introduced by Rep. Earl Pomeroy (D-ND) – Would extend the 2009 estate tax rates permanently (45% rate; $3.5 million individual exemption)
• HR 436 – Introduced by Rep. Earl Pomeroy (D-ND) – Would extend the 2009 estate tax rates permanently (45% rate; $3.5 million individual exemption), but does not index the exemption for inflation. Would also revise estate tax valuation rules for transfers of non-business assets.
• HR 498 – Introduced by Rep. Harry E. Mitchell (D-AZ) – Would gradually raise the exemption to $5 million, index it for inflation, and impose a top rate of 30% (Six Republicans have co-sponsored this bill).
• HR 1986 – Introduced by Rep. Travis Childers (D-MS) – Would set a $4 million individual exemption and impose a 40% top rate.
• HR 2023 – Introduced by Rep. Jim McDermott (D-WA) – Would set a $2 million per-person exemption, indexed for inflation, and impose progressive tax rates based on the estate value with a 55% top rate.
• HR 3463 – Introduced by Rep. Kevin Brady (R-TX) and the Republican leadership – Would make permanent the 2010 repeal of the estate tax.
• HR 3524 – Introduced by Rep. Mike Thompson (D-CA) – Seeks to prevent the value of inherited farmland from being subject to the estate tax if the decedent’s family continues to own and farm it.
• HR 3905 – Introduced by Rep. Shelly Berkley (D-NV) – Would raise individual exemption from $3.5 million to $5 million over ten years, and lower the rate from 45% to 35% over the same time period.
  

Last updated: November 24, 2009