What's New Regarding Estate Tax Reform: Compromise Would End Death Tax - Estate taxes would be repealed in 2011 under legislation proposed by the leader's of the Senate Finance Committee. The amount of an estate not subject to taxes would rise to $4 million over the next 10 years under the bipartisan compromise. (Please see chart below.)
The proposal, named the "Restoring Earnings to Lift Individuals and Empower Families (RELIEF) Act of 2001," includes marginal rate cuts, marriage penalty relief, doubling of the $500 child care credit, and, most importantly, estate (but not gift) tax repeal.
| Calendar Year | Estate and GST Tax Deathtime Transfer Tax Exemption |
Highest Estate and Gift Tax Rates |
| 2002 | $1 million | 50% |
| 2003 | $1 million | 49% |
| 2004 | $2 million | 48% |
| 2005 | $3 million | 47% |
| 2006 | $3 million | 46% |
| 2007 | $3 million | 45% |
| 2008 | $3.5 million | 45% |
| 2009 | $3.5 million | 45% |
| 2010 | $4 million | 45% |
