Senior Director of Federal Tax Policy
A couple of promising developments occurred on the estate tax front yesterday. The Senate soundly defeated (59-39) an effort by Sen. Jim DeMint (R-SC) to repeal the tax permanently. (It expired at the end of 2009 but is scheduled to return in much larger form next year when the 2001 tax cut expires.) And at a teleconference sponsored by United for a Fair Economy, former Treasury Secretary Robert Rubin called on Congress to reinstate a robust estate tax.
As the debate over the tax’s future continues, here are a few points to keep in mind:
Given our fiscal situation, preventing repeal isn’t nearly enough. At a minimum, Congress should not weaken the estate tax beyond its 2009 level.