As follows are comments from AALU, the life insurance industry's lobbying organization, on Estate Tax Reform.
Despite efforts in the Senate to agree on a short-term estate tax extension, the inability to find a suitable legislative vehicle to do so amid the crush of controversial year-end business has lead to the likelihood of temporary repeal beginning January 1, 2010. There has been some discussion of a retroactive reinstatement of the estate tax in early 2010, but exactly how and when that would occur remains unknown at this point.
While the House has already passed a permanent extension of 2009 estate tax law, pending a last-minute agreement in the Senate in the days ahead, lawmakers will be left with no options in dealing with this issue before December 31.
AALU has not wavered in our advocacy for permanent estate tax reform that includes reunification, portability, and indexing for inflation, and only in this rare lawmaking environment has this scenario occurred. We will continue to aggressively engage on this issue and communicate to you in the days ahead about further developments