In a vote closer than I expected the house passed, an Estate Tax Bill! For all intents and purposes the bill freezes the Federal Estate Tax (Remember State Estate tax is different) so that every U.S. Citizen has a $3,500,000 exemption and anything above that amount is effectively taxed at 45%.
The Bill passed 225 to 200, with Republicans (and 26 Dems) voting against the bill. Republicans voted against the Bill in hopes for a more generous Bill which would abolish all estate taxes or raise the exemption even higher to $5,000,000.
I go back and forth on the Estate Tax. As a rule, I dislike most taxes and am a libertarian at heart. Alternatively the Estate Tax (often called the Death Tax by its opponents) effects approximately 1 to 2% of the entire country.
Its not the end of the road, the Senate has to put forth their version of a similar bill, and that seems like its going to be a much tougher road. Then 3 Czars will have to look at it, I mean Obama will then have to sign the final version.
Some taxes, like the death tax, really hurt folks who have a bit of money. The good thing is that many of those folks can afford a good tax pro to help them find loopholes!
Gabe,
The problem is when the person doesn’t know or realize that they are in the group that owes the money!
How can you not know you have $7M (couple) or $3.5M (single) in your estate? My wife & I (with her brother) just paid about $18K to bury her mother, who outlived her money and the worth of her house (she had a live-in caregiver & died at 97).
Cry me a river…
Ray,
Are you say8ing that you are against the estate tax? Against the level it is at? Or think that burial fees are too high?