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Tuesday, January 01, 2013

The proposed estate tax:


During the Bush years the estate tax was 45+% with an exclusion of around $2 million. Now Obama claims a win with a 40% rate and exclusion of $5 million. How? By saying that the rate goes up from 35%.

But the 35% was Obama's policy when he agreed to a two-year extension of the Bush cuts in late 2010. So we are actually seeing the estate tax raised from Obama's low number. The "Bush rate" was always 45% or greater (excepting 2010 when there was no estate tax).

Talk about negotiating with yourself.

UPDATE: Here is how the White House is putting it:

• Raises tax rates on the wealthiest estates: The agreement raises the tax rate on the wealthiest estates – worth upwards of $5 million per person – from 35 percent to 40 percent, in contrast to Republican proposals to continue the current estate tax levels.




19 comments

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Yawn.

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(<- Czech Republic, next to Russia)

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and you and I shall croak, too.
So if you wanna be truly smart, babe,
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