President Obama has brokered a broad tax deal with Congressional Republicans that includes a reinstatement and two-year extension of the estate tax that would provide a $5 million exemption for individuals at a 35% tax rate. While no legislative language has been produced and details of the package remain subject to change, we are optimistic about the inclusion of reunification of the estate and gift tax exemptions in the deal. The President plans on elaborating on the tax deal and his rationale for it at his press conference this afternoon at 2:20 PM ET.
Absent any deal the estate tax, which is zero on the federal level in 2010, would revert to pre-reform levels of rates as high as 55% and only a $1 million exemption
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