Time is running out for efforts to abolish the estate tax.
Sen. John Kyl, R-Ariz., a key advocate for repeal, delivered that message here today at a summit for “permanent death tax repeal.”
The Senate originally was going to vote on outright repeal this month, but now the press of other issues has pushed the likely voting date back to June, Kyl said.
Kyl conceded that outright repeal is unlikely to occur, but he said he hoped to win enough support to pass a compromise proposal that would establish a $5 million threshold for the estate tax for each spouse.
The compromise proposal would index the threshold for inflation; set the tax on estate assets above the threshold at the capital gains rate, which is now 15%; and step up the basis for assets bequeathed to heirs, Kyl said.
If Democrats win more seats in November and an opponent of outright estate tax repeal, such as a Democrat or Sen. John McCain, R-Ariz., becomes president in 2008, that “will dramatically negatively affect our ability” to win repeal,” Kyl said.