Update: Estate Tax Bill

In this lame duck session, Congress continues to wrestles with tax legislation, including how to deal with the Bush tax cuts and estate tax.  Senator Max Baucus (Senate Finance Chair, D-Mont) has introduced legislation that will reinstate the estate tax at the 2009 level with an exemption of $3.5 million and a tax rate of 45%.

Negotiations continue, but as the end of the year approaches quickly, we should know shortly if the legislation has a chance of passing or not.

The Hill reports

The Baucus legislation makes permanent the 2009 estate tax rate of 45 percent, with an exemption for estates under $3.5 million, an issue that Republicans and Democrats have worked on for months without reaching an agreement.

"This estate tax policy recognizes the unique estate planning challenges of family ranchers and farmers across the country," Baucus said in a statement tonight.

The Baucus legislation would make permanent the current 15 percent rate for capital gains for individuals making up to $200,000 and families making up to $250,000. The bill also continues to treat dividends as capital gains rather than ordinary income.

To read the full Hill article, click HERE.