Lawmakers Sculpt Budget Resolution Estate Tax Provision

The estate tax exemption would be $3.5 million per spouse, and the maximum tax rate would be 45%.

Insurance industry trade groups representing both underwriters and agents have said in the past that estate tax reform that calls for a per-person exemption of between $2.5 million and $3.5 million and a maximum tax level of 45% would be an “affordable” tax reform that the industry could live with.

The Association for Advanced Life Underwriting, Falls Church, Va., also “is seeking is a reunification of the estate and gift tax exemptions, which would simplify the planning process and provide greater incentive for families to pass assets, particularly business assets, during life instead of at death,” says Jana Barresi, AALU policy and public affairs director.

Mike Kerley, a senior vice president at the National Association of Insurance and Financial Advisors, Falls, Church, says Congress is unlikely to act on estate tax reform until after the 2008 elections.

Health insurers, meanwhile, have made increasing SCHIP funding a priority.

The budget resolution conferees have issued a statement rejecting the Bush administration’s proposal for SCHIP funding levels. The budget resolution “instead provides up to $50 billion for expanding coverage and improving children’s health through SCHIP,” conferees state in their report.

“There are an estimated 6 million children eligible but not enrolled in either SCHIP or Medicaid,” the conferees write. “These additional SCHIP funds will expand coverage to uninsured children and ensure states can maintain current caseloads.”