Bad News: Year End Approaches and Temporary Extension Possible

During the week of December 14, the House of Representatives is expected to consider the last appropriations bill for the year, the Department of Defense (DOD) Appropriations bill. As in past years, the House leadership is thinking of using the “last train out of the station” for the year as the vehicle to move “must do legislation.” Speaker of the House Nancy Pelosi (D-CA) said on December 10 that the leadership was considering using the DOD bill to move a jobs bill, extension of unemployment insurance, COBRA premium subsidy extension, and other provisions that expire at the end of the year. It is likely that a short term extension of the estate tax and “so called” extenders will hitch a ride to the House DOD bill; whether the Senate will go along with the plan remains to be seen.

The Will Doctor notes: this is bad news, and defers the permanent solution to an election year-so there exists an increasing possibility of a reversion to the statute in 2011, and the $1 million exemption equivalent that we all fear.

Posted in Status of Tax Legislation, WillPlan Blog.

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