If you're old and rich, hire a food taster

[charlie]

The estate tax disappears for one year, beginning Jan 1st.

WASHINGTON -- The federal estate tax will likely expire as scheduled Jan. 1, creating dilemmas for politicians of both parties and roiling tax planning for thousands of Americans.

Senate Democratic leaders Wednesday failed in a last-ditch effort to pass a short-term extension to override the tax's expiration, a process put into motion during the Bush administration. That virtually ensures that the tax will disappear Jan. 1.

Under 2001 tax legislation, the federal estate tax is set to disappear in 2010. If Congress does nothing, it pops back into effect in 2011, at the Clinton-era top rate of 55%, with a $1 million exclusion. Currently the top rate is 45%, with a $3.5 million exclusion.

Most Democrats were pushing to extend the current rate permanently. Republicans, by contrast, support a 35% top rate and a $5 million exclusion as a second-choice substitute for a permanent repeal...

http://online.wsj.com/article/SB126098351451293981.html?mod=WSJ_newsreel_us

[Laelth]

1. Democrats favor the current 3.5 mil. exclusion over the Clinton-era 1 mil. exclusion?

Whom are they working for, exactly?

:shrug:

:dem:

-Laelth

[vadawg]

2. a million today isnt what a million was even 5 years ago

[muriel_volestrangler]

3. Any fix in 2010 is expected to be made retrospective, though

Still, there is little doubt the Senate will tackle this in the beginning of 2010. Generally, when a law is passed, it becomes effective on the date of passage. However, this law will be an exception. In order to avoid a complete repeal of the estate tax in 2010, this law is expected to contain a provision making it retroactive to Jan. 1, 2010, according to Wayne Otchis, a certified public accountant in San Diego. Otchis spoke at a Spidell Publishing Inc. (www.caltax.com) tax update seminar in Woodland Hills, Calif. on Wednesday.

http://www.marketwatch.com/story/estate-tax-will-rise-from-the-dead-in-2010-2009-12-18?reflink=MW_news_stmp