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The estate tax is being phased out through increases in the applicable exclusion amount (the amount of one's estate that is exempt from tax). The applicable exclusion amount is $1 million for 2002 and 2003; $1.5 million in 204 and 2005; and $2 million in 2006 through 2009. The estate tax is completely repealed only for decedents who die in 2010. In 2011, the estate tax is again applicable with an applicable exclusion amount of $1 million. All provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001 expire at the end of 2010. That is why President Bush has been talking about making the tax cuts permanent.

Let's hope Bush is successful in doing just that. The Dems/Socialist/Commies will not like it because it does not meet their requirement for income redistribution. So it will be a fight.