Backdoor Tax Increases
By: Doug Busselman, Executive Vice President
If Congress were to do the right thing they would make a permanent end for death taxes. That’s what they were supposed to do a few years ago when they put into motion the downward spiral that would take estate taxes to zero. Oops, silly legislative system, instead of doing away with taxes on estates that people built over their live time, paying taxes all the way along – after the zero in 2010, things snap back with full force and collection in 2011.
Coming to the rescue, is a reform bill offered by Nevada Congresswoman Shelley Berkley and Congressman Kevin Brady of Texas. H.R. 3905, phases in an increase in the estate tax exemption to $5 million per person and includes a phased-in reduction of the top rate to 35 percent while continuing stepped-up basis.
Hold the phone though, the actual legislation that will get first shot is offered by North Dakota’s Congressman Earl Pomeroy, which is expected to be on the House floor as early as Thursday or Friday. Pomeroy’s bill, H.R. 4154, makes permanent the $3.5 million per person exemption and the top tax rate of 45 percent. The exemption is not indexed for inflation…in other words a tax increase aimed at the pursuit of wealth redistribution that the current Congress is so intent to carry out.
Pomeroy is supposed to be representing North Dakota, a state dominated by family farmers who will be significantly impacted by his objectives of extracting greater amounts from those who have died.
H.R. 3905 is also a tax increase (since anything more than zero is a lot more), but it does a lot more to help those who need protection from government’s heavy tax hand. If we can’t get our elected representatives to honor their commitment to an end to the Death Tax, at least we should receive less of a tax increase than what is being planned by way of H.R. 4154.
If Congress were to do the right thing they would make a permanent end for death taxes. That’s what they were supposed to do a few years ago when they put into motion the downward spiral that would take estate taxes to zero. Oops, silly legislative system, instead of doing away with taxes on estates that people built over their live time, paying taxes all the way along – after the zero in 2010, things snap back with full force and collection in 2011.
Coming to the rescue, is a reform bill offered by Nevada Congresswoman Shelley Berkley and Congressman Kevin Brady of Texas. H.R. 3905, phases in an increase in the estate tax exemption to $5 million per person and includes a phased-in reduction of the top rate to 35 percent while continuing stepped-up basis.
Hold the phone though, the actual legislation that will get first shot is offered by North Dakota’s Congressman Earl Pomeroy, which is expected to be on the House floor as early as Thursday or Friday. Pomeroy’s bill, H.R. 4154, makes permanent the $3.5 million per person exemption and the top tax rate of 45 percent. The exemption is not indexed for inflation…in other words a tax increase aimed at the pursuit of wealth redistribution that the current Congress is so intent to carry out.
Pomeroy is supposed to be representing North Dakota, a state dominated by family farmers who will be significantly impacted by his objectives of extracting greater amounts from those who have died.
H.R. 3905 is also a tax increase (since anything more than zero is a lot more), but it does a lot more to help those who need protection from government’s heavy tax hand. If we can’t get our elected representatives to honor their commitment to an end to the Death Tax, at least we should receive less of a tax increase than what is being planned by way of H.R. 4154.
Posted by Doug Busselman at 12/2/2009 3:53 PM 
Categories: Congress
Tags: Estate Taxes Death Taxes Congresswoman Berkley Congressman Pomeroy
Categories: Congress
Tags: Estate Taxes Death Taxes Congresswoman Berkley Congressman Pomeroy
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