The Estate Tax is Back

After a rather long process with many stops and starts the estate tax is back.  Set at a $5 million exemption ($10 million for couples) and a tax rate of 35%.  This is for the next two years, and then I suppose we go through the process all over again.  There is also talk of changes to the exemption and rates over the next two years, but many experts believe that a serious challenge may happen, but with little hope of passage.

The Senate passed the new tax laws which includes a continuation of the Bush tax cuts on Wed by a vote total of 81 to 19 and through the House by a vote of 277 to 148 on Thursday evening.  President Obama signed the bill into law on Friday afternoon.

The Washington Post reports

President Obama signed into law the most significant tax bill in nearly a decade Friday, a day after overcoming liberal resistance in Congress to continue for two more years tax breaks enacted under president George W. Bush and to provide a fresh federal boost for the tepid economic recovery.

To read the full article in the Washington Post, click HERE.