On October 14, 2010, the Wall Street Journal published Estate-Tax Rises Again as Issue on Trail, by John McKinnon. McKinnon reports that "a move to end the estate-tax is luring new adherents in the 2010 midterm campaign, turning permanent repeal into a negotiating stance for future congressional wrangling over taxes."
Reasons why the estate tax has become a hot issue on the campaign trail include:
- tax rates are scheduled to rise in 2011
- it affects small businesses an family farms
- it is an emotional issue
For now, it appears unlikely the momentum behind repeal will prompt Congress to extend the repeal for 2011. Instead, the current Democratic-controlled Congress seems likely to consider a new version of the estate tax in a lame-duck session after the November election as part of a package of extensions of other expiring Bush-era tax breaks.
A strong showing for repeal in November, however, could raise pressure on lawmakers to lower rates and increase exemptions, Republican aides say. It could also lay the groundwork for reconsideration of the issue following the 2012 election.
McKinnon discusses how the estate tax is impacting specific campaigns.
McKinnon discusses the news in this interview: