- Rate? 35%.
- Exemption? $5M.
- Unified? Yes.
- Indexed for inflation? Yes.
- Portability? Yes.
- 2010? Election between carryover and step-up in basis.
- Permanent? Yes.
Jeff Marshall, Republican Senate leader introduces his Proposal on Estate and Income Taxes - Tax Hike Prevention Act, Marshall Elder & Estate Planning Blog, Sept. 18, 2010:
With regard to the federal estate tax S.3773 provides for a 35% estate tax rate; a unified estate/gift exemption amount of $5 million (per individual), indexed for inflation; and a stepped-up basis for inherited assets. For the year 2010, estates would be able to elect to retain the zero rate and carry-over basis of current law (and capital gains tax would apply to the carry-over basis when the asset is sold) or choose the stepped-up basis structure. For the estates of individuals dying after 2010, assets would receive a stepped-up basis and be subject to a 35% tax rate (with a unified estate/gift exemption of $5 million, indexed for inflation).
In this video, Sen. McConnel discusses S. 3773 (but does not specifically mention the estate tax). More importantly, Sen. McConnel highlights the general divide between Republicans and many Democrats regarding taxes and the economy:
(Federal Estate Tax Bills in Front of Congress has been updated.)