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GRASSLEY: THERE WILL BE NO ESTATE TAX REPEAL

January 27, 2006

The TaxProf Blog points to an interview with Bloomberg News where Senator Grassley gives up on permanent estate tax repeal:

Congressional Republicans don't have enough votes to extend a repeal of the estate tax beyond 2010 and may have to settle for a compromise that limits the levy to bequests of more than $5 million, Senator Charles Grassley said. "If we could get a $5 million exemption with a 15 percent rate, I think that would be a decent compromise," Grassley, an Iowa Republican who heads the finance committee, said in an interview in Davos, Switzerland, where he is attending the World Economic Forum. "That's not going to satisfy the president, but I think that that's the best I can do in the United States Senate in order to get the votes to get it passed."

If he thinks that's a "decent" compromise, expect a lower exemption and/or a higher rate.

(Unfortunately, the TaxProf's link doesn't go to the interview, and I can't find a link to the full Bloomberg article).

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