Conventional wisdom says the Democrats will wait until shortly before Election Day to extend the Bush tax cuts for couples making less than $250,000. Raising income-tax rates for other taxpayers will attract votes, the theory goes, because voters want to "soak the rich."
As for the estate tax, Senator Judd Gregg offers a decidedly minority opinion: "It’s my understanding they are close to an agreement which I hope we can obtain before we leave for [August] recess…."
More likely, estate tax arguments will drag on into November or December.
Will Republicans offer to support extension of the 2009 version of the estate tax if the Bush income-tax cuts are extended to all brackets?
If thwarted, will Republicans let the bad old estate tax reappear, hoping to repeal it after retaking control of Congress?