Fixing The Death Tax Mess
By: Doug Busselman, Executive Vice President
For those who have worked all their lives, paid taxes on the revenue used to acquire assets, paid capital gains taxes as values on the assets increased – 2010 would seem to be a rather good year to die. It is a one-year window where the death taxes assessed by the United States government expire. Thanks to the political maneuvering of the Democratic party, several years ago, fighting the idea that ending the death tax would be good for people – the legislative package for estate tax reform included a decline over time, expiring in 2010 and then coming back full force in 2011. How dare there not be a tax assessment on the estates of people who have died – don’t think you can escape taxes that easily.
There’s currently a few ideas being worked on in Congress, including a one-year extension to put off the full-force snap back. This approach would keep the exemption level of $3.5 million worth of assets (per person) and a top tax rate of 45 percent. Without the extension the level of exemption in 2011 drops to $1 million worth of assets and the top tax rate soars to 55 percent.
A good piece of legislation H.R. 3905, has been introduced by Nevada’s Congresswoman Shelley Berkley, who teamed up with Representative Kevin Brady from Texas. This bill proposes to phase-in an increase in the estate tax exemption from $3.5 million to $5 million per person and to phase-in a reduction of the top rate from 45 percent to 35 percent over 10 years. Similar legislation is in the cue for consideration by the Senate, offered by Senators Blanche Lincoln of Arkansas and Jon Kyl of Arizona.
The foundation of a sound working economy rest in the ability to establish business enterprises, including farms and ranches, with the ability to transfer those business ventures on to future generations. More than one agriculture operation has been lost due to the ravages of economic hardships caused by the onerous extraction of death taxes.
There is simply no justification for taxing people beyond the grave and it’s high time the tax was totally abolished. Until that objective is accomplished, passage of the proposals to increase the exemption to $5 million per person, with the reductions in tax rates is essential. 2011 isn’t that far away.
For those who have worked all their lives, paid taxes on the revenue used to acquire assets, paid capital gains taxes as values on the assets increased – 2010 would seem to be a rather good year to die. It is a one-year window where the death taxes assessed by the United States government expire. Thanks to the political maneuvering of the Democratic party, several years ago, fighting the idea that ending the death tax would be good for people – the legislative package for estate tax reform included a decline over time, expiring in 2010 and then coming back full force in 2011. How dare there not be a tax assessment on the estates of people who have died – don’t think you can escape taxes that easily.
There’s currently a few ideas being worked on in Congress, including a one-year extension to put off the full-force snap back. This approach would keep the exemption level of $3.5 million worth of assets (per person) and a top tax rate of 45 percent. Without the extension the level of exemption in 2011 drops to $1 million worth of assets and the top tax rate soars to 55 percent.
A good piece of legislation H.R. 3905, has been introduced by Nevada’s Congresswoman Shelley Berkley, who teamed up with Representative Kevin Brady from Texas. This bill proposes to phase-in an increase in the estate tax exemption from $3.5 million to $5 million per person and to phase-in a reduction of the top rate from 45 percent to 35 percent over 10 years. Similar legislation is in the cue for consideration by the Senate, offered by Senators Blanche Lincoln of Arkansas and Jon Kyl of Arizona.
The foundation of a sound working economy rest in the ability to establish business enterprises, including farms and ranches, with the ability to transfer those business ventures on to future generations. More than one agriculture operation has been lost due to the ravages of economic hardships caused by the onerous extraction of death taxes.
There is simply no justification for taxing people beyond the grave and it’s high time the tax was totally abolished. Until that objective is accomplished, passage of the proposals to increase the exemption to $5 million per person, with the reductions in tax rates is essential. 2011 isn’t that far away.
Posted by Doug Busselman at 11/25/2009 5:06 AM 
Categories: Congress
Tags: Death Taxes Congresswoman Shelley Berkley
Categories: Congress
Tags: Death Taxes Congresswoman Shelley Berkley
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