Future of the estate tax

December 31, 2009
Back to TopCommentsE-mailPrint

It’s anybody’s guess how Congress will deal with the Dec. 31 expiration of the estate tax, but it’s certain that lawmakers won’t please everyone.

The tax, 45 percent on estates worth more than $3.5 million ($7 million for couples), ends in 2010 only to be scheduled for a comeback in 2011 at a significantly steeper rate—60 percent on $1 million or more.

As IBJ reporter Peter Schnitzler wrote recently, a 60-percent tax would severely cripple many entrepreneurs’ plans to pass along their hard-earned work to heirs.

Most observers expected Congress to update the Bush-era elimination of estate taxes before the deadline, but lawmakers instead kicked the can ahead. Now it’s virtually impossible for people to plan.

What do you think Congress should do? And what do you think about estate taxes in general?

 

ADVERTISEMENT
  • Estate Tax
    JoyceDecember 31, 2009 12:27 PM
    Tax relief is nowhere on this president's and congress' priority list.
    Reply to CommentFlag Comment
  • Estate Tax
    RandyDecember 31, 2009 12:54 PM
    Congress has seldom gotten it right. The whole concept of Estate Taxes is revolting as it's a convoluted attempt to impose double taxation on "We the People". Congress needs to simplify the tax code and concentrate on budget restraint. The irresponsible manner in which they manage "our money" is a total disgrace. The Estate Tax is a greedy money grab that stifles continuity in small businesses across the country. Taxes have to be paid in cash, the bulk of most estates is tied up in "restricted stock" or farmland passed down from previous generations, not cash. Congress will surely kill their golden goose.
    Reply to CommentFlag Comment
  • Estate Tax
    DonDecember 31, 2009 2:09 PM
    Donâ??t count on Congress doing anything about the estate tax. Get ready for one-year repeal in 2010, no retroactive action, and a full blown return of the estate tax in 2011 to previous levels! Both sides will be screaming all the way to 2011 that the other side is obstructing something being done to help us. For years, the estate has been used as political club by both Democrats and Republicans alike. The Republicans claim they want full repeal and appeal to their core for political contributions to support the fight knowing full well that estate taxes will never be repealed. The Democrats use the issue as a populist club against the wealthy saying that charity giving will suffer if estate tax rates are lower and that estate taxes level the playing field to provide greater opportunity for everyone. All the time, both parties intend to do nothing about it except blame the other party for stopping something constructive from being done. The truth of the matter is that both Republicans and Democrats can and will take and spend everything you have, whether your dead or alive, to buy a vote or get pork barrel projects. The estate tax dilemma and the â??deliberate inabilityâ?? of Congress to act and resolve this matter in 2009, or any other year for that matter, shows exactly how broken and dishonest Washington has become.
    Reply to CommentFlag Comment
  • namaste
    namasteDecember 31, 2009 4:03 PM
    Estate taxes are traditional and reasonable means for governments to raise needed revenue. But a 40 or 60% tax of anything is confiscatory and unreasonable.
    Reply to CommentFlag Comment
    • tax bills
      MooseDecember 31, 2009 4:08 PM
      So, how does the government decide what is reasonable, when it is drowning in debt?
      namaste
      Reply to CommentFlag Comment
    • tired of increasing taxes
      Barbara EdenDecember 31, 2009 4:45 PM
      double taxation is unreasonable, expecially at 40 - 60%
      Reply to CommentFlag Comment
    • crap crap & more crap
      todkeyDecember 31, 2009 9:19 PM
      there is no resonable tax rate that is fair on anybody's post taxed savings/estate. This money was taxed once already, taxing it again is absurd
      Reply to CommentFlag Comment
    • Trusts and Foundations
      RussJanuary 2, 2010 9:39 PM
      Does the estate tax repeal this year apply to what I imagine are trillions locked up in trusts and foundations? Getty, Ford, Rockerfeller, JP Morgan and the robber barons of yesteryear have had their capital gains and estates tied up in foundations and trusts in the market and compounding interest for scores of years. Can they pull out now? If so, can you imagine the wealth transfer that will occur when thee managers of these trusts and foundations pull out of the US economy this year and into tax friendly countries and foreign currencies?

      Did anyone notice the market sold off at unusually high volume the last 15 minutes and after hours trading on Thursday?

      Also, for IBJ reporters - it would be an interesting related article if you found out how much money Ruth Lilly's heirs lost to the estate tax because she passed 2 days before the new year.
      Reply to CommentFlag Comment

    Post a comment to this blog

    COMMENTS POLICY
    We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
     
    You are legally responsible for what you post and your anonymity is not guaranteed.
     
    Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
     
    No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
     
    We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
     

    Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

    ADVANCED SEARCH
    Sponsored by
    ADVERTISEMENT

    1. The Fringe! Plus, the simple fact that there are so many local faves in such close proximity to each other.

    2. I remenber, watching the toll road, being built, through South Bend, when I was 10 years old. I believe, back then that it was estimated, that the toll road, would be paid for in 20 years and then it would be free. I am now 71, what happened? Since the power is in the people, by that, I mean that, we the people are in total control of everything. I, suggest that no one ever use the toll road again, let it go broke. We the people can control the price of everything, from groceries to gas, if we would just do it. If we don't pay the asking price, the sellers will lower the price and if we wait awhile, they will lower the price to what we accept as reasonable. I would like to know why a highway like interstate 94, is so well maintained, a much better highway, than the toll road, but has no tolls. I would also like to know why, a sitting governor, with a term limit, maximum of eight years, can lease, public property, for 75 years. Even though I have transponders in both of my trucks and will not be affected by the increase, I have been and will contine to avoid using the toll road. I make many trips from northern Indiana to Chicago, every year, and I prefer the better highway, I94!

    3. Coming from her background,she should be used to those kinds of advances! Menard probably figured it was ok to tuck a buck!

    4. I'm still waiting for the list of available, high quality apartments in the Village.

    5. This criminal masquerading as a lawyer obviously has serious issues. He’s been proven by his own testimony to be a pathological liar and probably has a personality disorder as he seems to be constructing a reality around himself. He places no value on truth, honesty or loyalty as evidenced by what he has done to his clients and his own family. And by the demands and lies he has made in court, it is evident he feels entitled to do and say whatever suits his purpose and everyone else is expected to nod obediently and believe him because he is, after all, Bill Super Lawyer; or BS lawyer for short. This millionaire wanna-be no longer owns anything of value; he squandered it and put everything he had into foreclosure. He has no money, house, car, boat or vacation home left to show for what he earned or what he stole. He’s just another loser without morals who will be doing time. I’m certain all of his courtroom shenanigans are antagonizing his poor victims. As Lamar said, his behavior and claims in court have been outrageous. The judge needs to be more than concerned; he needs to be judicial and end this nonsense.

    ADVERTISEMENT