On October 22, 2009, House Ways and Means member Shelley Berkley (D-NV) introduced the Estate Tax Relief Act (H.R.3905), co-sponsored by Kevin Brady (R-TX) and Devin Nunes (R-CA), which would gradually raise the Estate Tax exemption from $3.5 million to $5 million over ten years, adjust it for inflation, and reduce the top tax rate over the same time period from 45 percent to 35 percent.
This bill is separate from legislation being drafted by House Ways and Means Committee Chairman Charles Rangel (D-NY) which will make the current Estate Tax law permanent with an exemption level of $3.5 million and a maximum tax rate of 45 percent.
Ways and Means Democrats are expected to discuss the issue in their caucus meeting the week of October 26th. There is speculation that the bill will include statutory pay-as-you-go (PAYGO) budgeting rules.