Tom Herman (WSJ): "Nobody knows what will happen [to the estate tax] . . . But there is a compelling reason to expect some action"

Tom Herman answers the pressing question: What Will Happen to the Federal Estate Tax? (Wall Street Journal, 11/7/2010).  Here is part of his answer: 

Q: In reading about what will happen to the Bush tax cuts in 2011, the federal estate tax is never mentioned, in my experience. Why so, and what should we expect?

—N.M., Santa Cruz, Calif.

A: The strange saga of the federal estate tax, dubbed the "death tax" by its foes, has drawn growing attention lately. Nobody knows what will happen -- even though the midterm elections now are history. But there is a chance that Congress finally will take action in coming weeks when lawmakers return for a lame-duck session.

Naturally, you can't rule out the possibility that Congress will do nothing. Gridlock seems like Washington's natural state these days. But there is a compelling reason to expect some action: If Congress does nothing, the nation will face a bizarre set of circumstances.

Comments

[Patrick J Hart]

It is nice to be hopeful, but for nine years we have expected Congress to act. During the early years we were expecting Congress to permanently end estate taxes, and more recently we have expected them to make the $3,500,000 exemption permanent. Still nothing has happened.

What is different now?

[Ventura Cabrera]

I heard that the people who makes more than 250,000.00 dolars per year can be benefiated by a cut on the taxes rates. So if that could happens, what will happen with the person who earn less than 20,000.00 dollars every year? I think that like in others countries USA must contemplate the posibility to cut taxes for poor peopple who earn the minimun salary in USA. What do you think Hani?