The word from the Senate today is compromise. The House passed a tax cut bill last week that would preserve the Bush tax cuts for all but the highest earners, but the Senate failed to pass that bill. Now leaders from both parties are indicating, although nothing will be certain until a vote occurs, that they will meet in the middle on the future of tax.
The compromise will likely involve a temporary extension of all the Bush tax cuts for all income levels, coupled with a renewal of the unemployment benefits that expired last Wednesday.
What this compromise might meant for the estate tax is not clear at the moment.
Update: It seems the compromise will include a reinstatement of the estate tax at a top rate of 35% with an exemption of $5 million.
For more on this or other tax concerns, contact the Chicago tax lawyers of Horowitz & Weinstein.