Senate Reportedly Close to Deal Scaling Back Estate Tax

Click here to write a Letter to the Editor.

he Senate is close to reaching a compromise that would eliminate the estate tax for all but the most wealthy Americans, the Wall Street Journal reported Wednesday.

Senators from both parties said they could reach a deal by the end of the summer, which would end a debate that has lasted for years, the paper reported in a front-page story.

The estate tax — dubbed the “death tax” by anti-tax conservatives — was rolled back in President Bush’s 2001 tax bill, and is gradually being lowered every year until it is phased out in 2010. But after that, the tax is scheduled to revert back to a 55% level.

The Journal said citing congressional sources that the tentative agreement would lower the estate tax beyond 2010 and raise the amount per person that is exempt from taxes to more than $3 million.

By contrast, the personal exemption was $1 million in 2001; this year, it is $1.5 million.

The House is almost certain to back any compromise passed in the Senate, the Journal said.