This week the U.S. House of Representatives voted to extend the current tax rates until the end of the 2013 Tax year. Among the provisions extended, are the current estate tax rates that were set to expire on January 1, 2013. The legislation will keep the rates at 35% with an exemption amount of $5 million.
In recent weeks a number of groups have asked Congress to provide them with certainty on the matter of taxes for the upcoming years. Among those groups was the National Cattleman’s Beef Association (NCBA). The organization claims that the estate tax has a direct impact on family owned businesses — and places a substantial burden of planning on those wishing the pass the business on to future generations. The group has long supported the total repeal of the estate tax or the more pejorative term “Death Tax”. However, with the possibility of the tax reverting to 2001 levels, they are more inclined to support this patch rather than face a drastic increase in estate taxes for the upcoming year.
It is unclear how much support this will have in the Senate. Taxation have been a big issue in recent months, including criticism of Mitt Romney on the issue of taxes by Senate Majority Leader Harry Reid (D-NV). Therefore, there may be little appetite by the Senate to wade into this issue.