Update: Estate Tax (Must Read for Appraisers)

I stated in previous posts that I would try to stay on top of any new estate tax law legislation. As I mentioned in earlier AW posts about upcoming estate tax legislation, that given the delay and the failure to pass, move or openly discuss estate tax legislation legislation we might be looking at higher estate tax rates. 

The Hill is reporting that a bill is being introduced by Senator Bernie Sanders of Vermont that would be retro-active to 2010 and set rates at the 2009 levels ($3.5 million exemption, and 45% tax above the exemption).  The Sanders proposal increases to a 50 percent tax on estates worth between $10 million and $50 million, 55% tax above $50 million, and estates with assets totaling at least $500 million would be taxed at 65 percent rate.

The Hill states the bill may be voted on as soon as next week. If passed by the Senate, the bill would have to be reconciled with the House bill.  Stay tuned.

The full article from the Hill is short, so I am posting in its entirety.

Sen. Bernie Sanders (I-Vt.) on Thursday introduced legislation reinstating the estate tax at 2009 levels for almost everyone but the super wealthy.

The bill levies a 45 percent tax on estates worth more than $3.5 million ($7 million for couples), but slaps a 50 percent tax on estates worth between $10 million and $50 million. Estates worth more than $50 million would incur a 55 percent tax, and estates with assets totaling at least $500 million would be taxed at 65 percent rate.

If enacted, the changes would be retroactive to the beginning of the year, when the estate tax repeal took effect.

Lee Farris, estate tax policy coordinator for United for a Fair Economy, a group that represents high-wealth individuals, supports the bill.

"This is the kind of commonsense solution that balances the desire to protect small businesses and farms, while ensuring that the super-wealthy give back to support the country that made their prosperity possible," she said in prepared remarks.

The fate of the estate tax is expected to be debated when the Senate acts on legislation providing tax relief and loan opportunities to small business. Votes on the bill are expected next week.

Farris plans to mobilize her members into supporting the legislation and seek co-sponsors for the bill. Sens. Tom Harkin (D-Iowa) and Sheldon Whitehouse (D-R.I.) sponsored the bill with Sanders.