Budget Calls for Congress to Do Away with 2010 Estate Tax Repeal
This week, the House and the Senate approved the concurrent budget resolution for fiscal year 2010. The budget calls for a permanent extension of the 2009 federal estate tax levels -- in other words, a $3.5 million federal estate tax exemption per individual and a 45% top federal estate tax rate.
The budget also calls on Congress to "extend incentives for enhanced charitable giving from individual retirement accounts, including life-income gifts." This language refers to extending and expanding the IRA charitable rollover.
The budget resolution does not change current tax laws. It is a nonbinding document. Unless Congress acts, the estate tax will be repealed for 2010 and will return with a $1,000,000 federal estate tax exemption in 2011. But the budget is a blueprint for major tax legislation and indicates Congressional support for a permanent extension of the 2009 federal estate tax levels.
The New York Times and the Wall Street Journal reported on Congress's approval of the budget resolution.
If you'd like a nice roadmap to the federal budget process, the Center on Budget and Policy Priorities offers this overview.
