The outcome of last week's election, which left Republicans with the narrowest of margins in both the House and Senate and a still undecided presidential race, means that bipartisan cooperation will be crucial to preventing legislative gridlock, Congresswoman Nita M. Lowey told some 70 accountants here at an event hosted by the Estate Planning Committee of the New York State Society of CPAs.

"With such a small margin between the two parties, no meaningful tax relief will occur unless there is bipartisan agreement," Lowey said in a speech Wednesday night at the Yale Club. Lowey, a member of the House Appropriations Committee, represents New York's 18th District, which covers parts of Westchester County, Queens and the Bronx.

The ability of both sides to work together will impact the fate of many major tax issues, including the estate tax, an issue of major concern for accountants.

While Lowey said she supports changes to the current estate tax laws, she said the impact of the Republican Death Tax Repeal Act, which would phase in a repeal over 10 years, is too harsh.

"I agree with the main goal of being able to pass more on to our children," she said. "But if you take a closer look at the effect, the price we would pay overall is too much."

In 2011, after the completion of the phase-in of the repeal, Lowey said the revenue loss from the bill would be $50 billion per year, an amount that would put the funding of many federal programs in jeopardy.

Congress is due back in session Dec. 5, however, Lowey noted, "if we don't have a president, we don't really know" what will happen.

Commenting on last week's presidential election, Lowey said, "Clearly we have to reform our electoral system," adding that it's an issue that "needs careful thought."

However, she noted, some good can come out of this year's controversy: perhaps in the next election, "more people will realize how precious their vote is and participate."

-- By Melissa Klein

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