Last Thursday Rep. Linda Sanchez (D-CA-39), introduced H.R. 5764, the Responsible Estate Tax Act, in the House of Representatives. This bill calls for the following:
- Reinstating the federal estate tax retroactively to January 1, 2010, with a $3.5 million estate tax exemption and initial 45% estate tax rate (the exemption and tax rate that were in effect in 2009).
- For estates valued above $10 million and below $50 million, a 50% estate tax rate.
- For estates valued above $50 million, a 55% estate tax rate.
- For estates valued above $500 million, a 10% surtax.
- Requiring a 10-year minimum term for grantor retained annuity trusts ("GRATs").
- Requiring consistent valuations for estate tax purposes and modifying the rules governing valuation discounts.
- Easing the estate tax burden on family farms by allowing an additional $3 million to be excluded from the value of an estate.
If the components of this bill look familiar to you, it's because they are identical to S. 3533, introduced in the Senate back on June 24 by Senators Bernard Sanders (I-VT), Sherrod Brown (D-OH), Al Franken (D-MN), Tom Harkin (D-IA), and Sheldon Whitehouse (D-RI): Senator Sanders' Super Progressive Estate Tax Bill.
As I've said before, don't hold your breathe on this bill and its companion in the Senate, or any other bills for that matter. Count on the federal estate tax to return in 2011 with a $1 million estate tax exemption and 55% estate tax rate.
- Overview of Current Federal Estate Tax Laws
- What is the Future of the Federal Estate Tax?
- How to Calculate Your Estate Tax Liability
- Where Will the Cash Come From to Pay Your Estate Tax Bill?
- How to Reduce or Even Eliminate Your Estate Tax Bill
- Kissing a Retroactive Estate Tax Goodbye
- Estate Tax Repeal Update - Senators Lincoln and Kyl Team Up Again By Proposing Amendment to H.R. 5297
To keep up to date on all of the bills circulating in Congress, visit Estate Tax Bills in Front of Congress.