The changes included a flat estate tax rate of 15 percent on the first $25 million of a decedent's estate. Estates in excess of $25 million would be subject to a 40% estate tax phased down by 30% by 2015. Taxpayers would also be entitled to exempt the first $3.75 million of their estates from taxation, phased up to $5 million by 2015.

Although H.R. 5970 was passed by the House, it was killed in the Senate. Because of the filibuster rule in the U.S. Senate, 41 Senators can prevent a vote on any proposed legislation.

On August 3. 2006. a vote was taken to overcome the threat of filibuster (cloture vole) to cut off debate and allow a vote on H.R. 5970. The cloture vote, which required 60 votes to pass, failed by a vote of 56 to 42. thus condemning H.R, 5970 to the dustbin of history.

Interestingly, four Democrats, including Robert Byrd (WV), Blanche Lincoln (AR), Ben Nelson (NE) and Florida's own Ben Nelson, voted with Republicans in favor of the cloture vote.

In November, after the Republicans lost control of both the House and Senate, the prospects for federal estate tax reform became even more questionable. Discussion suddenly turned toward a roll back of a variety of income tax cuts enacted by the Bush administration and any possibility for repel of the federal estate tax disappeared.

So now what will happen to the federal estate tax? Right now under current legislation the estate tax is marching rapidly toward full appeal in 2010 with the bizarre twist of springing back into effect in 2011 as it existed before 2001. It is very likely (that for the duration of the 110th Congress nothing will happen to the federal estate tax.

This is so for two reasons, first, although Republicans are now a minority in the Senate. they will likely be inclined to use many of the same tactics that allowed Democrats to kill H.R. 5970. The power of 41 Senators cannot be underestimated.

Of the 535 elected representative to our federal government between the House and Senate, it lakes less than 8 percent of the elected vote (41 of the 535) to shape and control legislative policy. Democrats have demonstrated the effectiveness of this power in the Senate since they originally lost control of that chamber in 1994.

Second, President Bush has telegraphed his intent to veto any legislation that results in tax increase. The Bush administration has pushed hard for full estate tax repeal. If any estate tax legislation gets through the Senate to the President, it will likely be vetoed if it results in an increased tax burden compared to the current legislation.

Consequently, gridlock on this issue is likely for the next two years. Estate tax reform will be punted into the 111th Congress after the 2008 Presidential election, and then it's a whole new ballgame.