There was just an interesting Reuters piece on the internet on the estate tax debate. It seems the Democrats are divided, and that’s why the bill that just passed the Senate (but will never make it through the House) went back to the pre-Bush $1 million exemption and 55% maxium rate. Even Obama hadn’t proposed that, and I had thought maybe the apparent change in position reflected in the recent Senate bill was just an election year ploy to please the Democratic base. Not so, says Reuters. Obama apparently currently favors a $3.5 million exemption and a 45% maximum rate, but there are those in the Senate Democratic caucus that think that’s too much of a good deal for some, so for purposes of the recent vote, Majority Leader Reid decided to simply do nothing (regarding the estate tax), as the bill had no chance of becoming law anyway, and wait until after the election to have the real debate. Ah, Washington!
John T. Svendsen