As Congress raps up 2009 business, it is looking unlikely any Death Tax reform legislation will pass the U.S. Senate. This means that on January 1, 2010, the federal Death Tax will reach 0% for the first time in almost 100 years!
Last week, there was an effort by Senator Baucus (D-MT) to pass legislation which would extend the current Death Tax for another year. However, Death Tax opponents in the Senate defeated this action, leaving very little hope for Death Tax reform in 2009.
In the New Year it remains unclear what will happen with the Death Tax. The Senate may choose to take up Death Tax reform and pass retroactive legislation which would be effective immediately. Although, this would be considered a tax increase during a crucial midterm election year and may be a difficult prospect.
FLA is in close communication with allies in the Senate and will be ready to act on any proposed Death Tax legislation.