Sen. Charles Grassley, the Iowa Republican who leads the Senate Finance Committee, said he was "a little anxious" to learn the Senate's GOP leader intended to push forward this week with a bill permanently repealing the estate tax.

"I think if we push to have a vote without having a compromise, it could be the end of estate tax for this year," Grassley said.

The Senate Majority Leader's office announced Friday that the GOP leader, Bill Frist of Tennessee, intended to push for the bill's consideration this week. Lawmakers and lobbyists working to permanently repeal the estate tax say the GOP doesn't have enough votes to overcome potential objections.

With that in mind, a small group of lawmakers, lead by Republican Sen. Jon Kyl of Arizona and Democratic Sen. Max Baucus of Montana, have been working on a compromise that lowers the estate tax rate and exempts more estates from taxation.

Under current law, the tax decreases each year until 2010, when it disappears for one year. But without action by Congress, it will return in 2011 at rates in place before President Bush's tax cuts lowered the levy.

Grassley said Baucus is sincerely trying to get Democrats on board with a compromise and negotiators are close to an agreement.

"I think anything that would go for complete repeal, even though I support complete repeal, might blow the whole thing up," Grassley said.

Nick Smith, a spokesman for Frist, said the GOP leader wants to see the estate tax gone for good. "Bringing it to a floor vote is the best way to move the bill forward," Smith said.

The House passed a bill this spring repealing the tax.

-- Mary Dalrymple (AP Tax Writer)