The debate on he feasibility of the new estate tax in the US is likely to end with the adoption of a compromise bill that would preserve the tax only for the most affluent citizens. Sen. Jon Kyl (R., Ariz.) is in discussions with Sen. Charles Schumer (D., N.Y.) about the possibility of a compromise bill to be introduced this year.

Republicans have continued to push for the repeal of the tax levied on the assets of deceased citizens that was at 55% before the Bush tax cut of 2001. The tax is due to reappear at the same rate in 2011. "Unless and until I think there is a good bipartisan bill, I continue to push for a full repeal," Mr. Kyl said.

The Republicans now face a toughening need to leave the ’death tax’ in the light of surging budget deficits, although they propose to keep the tax at 15% and exempt most small and family-owned businesses, approximately at $10 million a person and $20 million a couple in combined assets.

"The trade-off is whether you gamble to do away with the estate tax and risk losing this year -- or whether you get a reasonable exemption and reasonable rates and get it done now," says Senate Finance Committee Chairman Charles Grassley, an Iowa Republican. "I’d rather have complete repeal, but I am an advocate for permanency of the tax law."

In 2003 Americans filed 66,000 estate-tax returns, with less than half owing taxes on their estates. The tax was levied in that year on less than 1.5% of deaths.