I have posted periodically about the estate tax, which is set to return next year with an individual exclusion of $1 million. However, as part of the tax negotiations between Congress and the President, it appears that there may be a deal: A return of the estate tax, but with a $5 million exclusion, and a maximum rate of 35%. The following is from an article in the New York Times:
In addition to a two-year extension of the income tax rates enacted under President George W. Bush, the deal includes a one-year extension of jobless aid for the long-term unemployed. Officials said negotiators were also close to an agreement to restore the federal estate tax, which lapsed at the start of this year, with an exemption of up to $5 million per individual, and a maximum rate of 35 percent.
Mr. Obama, on a visit to Winston-Salem, N.C. on Monday, said the two sides were working toward an agreement that would prevent a tax increase at the start of the year when the Bush-era rates are due to expire.