Under the law passed by President Bush, there is no estate tax in 2010, and estates pay only capital gains tax; then the estate tax returns with a $1 million exemption in 2011. President Obama wants to prevent this one year gap by making the 2009 estate tax law permanent.   There are several proposals on the table, including Rep. Jim McDermott's, D-WA Sensible Estate Tax Act, HR 2023, which will provide $62 billion more in revenue over 10 years compared to President Obama's proposal.   We expect that Congress will vote later this year on legislation to make permanent changes in the estate tax. You can read what Rep. McDermott says in support of his bill in this 5/21/09 PBS news transcript:

"Reviving the Economy" - Congressional Difference of Opinion - Congressman Jim McDermott, D-WA