May 11, 2009
Obama Budget Would Keep Estate Tax at Current Levels
By Grant Williams
Washington
Final budget proposals released by the Obama administration today show that the president continues to support a plan to permanently keep the estate tax at levels that are already in effect this year.
Congress has adopted a budget outline that would do the same.
That approach is one many charities have been seeking, because they say it will help them appeal to donors.
In 2001, Congress passed the current estate-tax law, which gradually phases out the tax through 2009 and repeals it for 2010.
In 2011, however, the current law is set to expire and estate-tax levels that applied years earlier will go back into effect unless Congress takes action.
Under the current estate-tax law, heirs in 2009 can exempt $3.5-million from taxes ($7-million for couples), with amounts above that taxed at 45 percent.
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