Midterm Elections May or May Not Affect The Federal Estate Tax

12:47 pm Uncategorized

As stated in Decision 2010 (Forbes.com)  “Soured by a dismal economy, angry voters have broken the Democrats’ monopoly on power in Washington.” The balance of power in Congress has changed, but what affect does this have on the Federal Estate Tax? Those in favor of estate tax repeal believe the results of the midterm elections are in their favor, but advocates of a permanent estate tax are optimistic as well.

The elections yielded a pro-repeal majority in Congress for the first time in six years however it is not a majority in both chambers of Congress, there is only a “near-majority” in the Senate.  According to The American Family Business Institute, who initiated “the death tax repeal pledge”,  “Congress will now have a total of at least 49 repeal supporters in the Senate and 245 repeal supporters in the House, including incumbents who have previously voted for repeal.”

These numbers are still below the pro-repeal numbers during the Bush administration and repeal obviously was not achieved at that time.  Supporters of a permanent estate tax believe enough  newly elected legislators will not vote for permanent repeal because they ran on a platform of fiscal responsibility.  According to these proponents, it is not fiscally responsible to  repeal the estate tax when they cannot balance the budget.

Midterm Elections May or May Not Affect The Federal Estate Tax.  Although 49 Senators are likely to vote for repeal, 60 votes are needed to repeal the estate tax.

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