FALLS CHURCH, Va. - A bipartisan compromise on the estate tax debate appears promising in 2008, according to the Plumbing-Heating-Cooling Contractors-National Association (PHCC). The association reports that a year ago the estate tax legislation seemed to be dead, a victim of Congress’s inability to deal with the issue. However, on Nov. 13, 2007, Sens. Max Baucus (D-Wyo.), chairman of the Senate Finance Committee, and Jon Kyl (R-Ariz.), ranking member on the committee, resurrected the estate tax debate. This has created talk of a bipartisan compromise between Baucus and Kyl. While no specifics have been put forth, the senators would like to move forward to address the quickly approaching problem of the “sunset” of the estate tax repeal.
If Congress does nothing, the estate tax will disappear in 2010,
only to revert back to pre-2001 law in 2011, which carries an original rate of
up to 55 percent tax. Although some lawmakers and activists don’t want to
see the tax eliminated completely, resurrecting it could prove more politically
painful than reaching a compromise before 2010.
PHCC noted that if full repeal cannot be achieved, small
businesses still need some kind of relief and permanency in order to plan for
the future. However, any estate tax legislation will face the hurdle of
pay-as-you-go rules, which require tax cuts to be offset by spending cuts or
Jan. 22, 2008: Estate Tax Compromise Appears Possible
January 22, 2008