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(Oregon had the nation's highest exemption rate of 6.4percentt, up from 3.4percentt four years prior).
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At new higher exemption levels, far fewer estates would be touched in each state.
The deal would ultimately set an exemption of $5 million per person and a maximum rate of 35 percent — a higher exemption and far lower rate than many Democrats wanted.
Ideally, there would be a shift from income taxation to a progressive consumption tax (the simplest example being a flat tax with a very high exemption).
Just ask all those people who rushed to make large tax-free gifts to family members at the end of last year before a historically high exemption was set to expire.
As a result, he said, shareholders who receive the lower exemption could end up paying an assessment for more than the amount they receive from the program, while those who receive the higher exemption would pay less.
The strongest opposition in the House was to the estate tax provision, which would set an exemption of $5 million per person and a top rate of 35 percent -- a higher exemption and lower rate than many Democrats want.
The deal will set the exemption, or unified credit, at $5 million per estate, and the maximum rate at 35 percent — a higher exemption and lower tax than many Democrats want.
Then, in late 2010 came a jumble of unexpected tax actions: from reinstating the estate tax for this year and next, with a higher exemption level than most tax advisers expected, to extending the Bush-era tax cuts for two more years.
However, given the fairly high exemption levels and rate thresholds, the effect of the estate tax was felt mainly by those with the very largest fortunes, and not by the merely well-to-do.
Republicans want a higher exemption and lower rate.
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