Repeal Of Estate Tax Is A Possibility
When the tax relief measure was signed into law in December that extended the Bush
era tax cuts the estate tax parameters were affected. If the Bush cuts would have been
allowed to sunset with no new legislation having been passed the estate tax would have
returned to the 2001 level of 55%, and the estate tax exclusion would have been just $1
million. Instead we now have a $5 million exclusion and a 35% maximum rate of
Although this is an improvement over what we would have been looking at if the Tax
Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 had not
been passed, many people feel as though the estate tax should be permanently repealed.
The fact is that the estate tax is a selective exercise in double taxation, and if genuine
fairness is a part of the equation perhaps the tax should indeed be repealed.
Any assets that remain after you pass away were acquired with resources that you were
able to retain after paying innumerable taxes. You paid income and payroll taxes,
property tax, sales tax, capital gains tax, gasoline tax, and on and on. While you are alive
these after-tax assets are safe from further taxation, but upon your death they are
suddenly subject to a tax that under the present parameters would consume more than a
third of their worth. Many would say that this is patently unfair and logically
In fact, some of those who feel as though the estate tax is not fair hold seats in the
United States House of Representatives. There have been five bills introduced to the
House seeking to repeal the estate tax, so a repeal is something that is very much within
the realm of possibility. As the 2012 election cycle gets into full swing we will
undoubtedly see the issue of the estate tax debated and it will be interesting to see how
much support these repeal efforts attract.
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estate planning and business planning resources to residents of Atlanta GA. To learn
more about these free resources, please visit http://www.cpyke.com/ today.