The final push on estate tax repeal is coming

The surest signal yet that resolution of death tax issues is near is this article: Few Wealthy Farmers Owe Estate Taxes, Report Says - New York Times. Not mentioned in the article is the fact that the presence of death taxes has pushed many farm families to sell out to corporate agribusiness. I can't document how widespread a phenomenon that is (the same is true in the newspaper publishing industry, which was documented in Congressional testimony), but I have anecdotal first hand experience.

One can see the seeds of compromise here. It is very true that middle class farmers stand to lose if carryover basis is brought back into the law. It was the farm lobby that forced repeal of carryover basis in the late 70s (who the heck can guess the tax basis of a tractor?).

I believe that we were on course for bringing the estate tax issue to resolution this month, either with full repeal (30% chance) or a negotiated settlement that would accelerate a larger exemption (70% chance). However, the O'Connor retirement has upset that applecart, and if Rehnquist (and others?) also decide to retire most other Senate business is predicted to grind to a halt.