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Estate tax: 35% rate, $5 million exemption?

May 18, 2010

Tax Analysts reports ($link) that the Senate Finance Committee may be nearing an estate tax agreement:

Kyl, the Senate minority whip and second-highest ranking Republican in the chamber, said he and Baucus have agreed on a 35 percent top rate and a $5 million exemption level indexed for inflation -- a proposal that "if at all possible," would be permanent, according to Kyl.

The story didn't say whether the repeal would be retroactive to January 1, 2010, when the estate tax went away. Other details, like gift tax levels and exemption and the ability to combine spousal exemptions, are also up in the air.

UPDATE, 5/19/2010: Estate tax deal? Not so fast