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Do you think they should revive the Federal Estate Tax?

WASHINGTON – The federal estate tax would be revived, but at a reduced rate, under a plan being pushed by two senators, a Democrat and a Republican.

Democrat Blanche Lincoln of Arkansas and Republican Jon Kyl of Arizona hope to attach the new estate tax to a small business lending bill pending in the Senate. Their bill would set the top estate tax rate at 35 percent, with a per-person exemption of $5 million, indexed to inflation.

In 2009, the top estate tax rate was 45 percent with a per-person exemption of $3.5 million. Congress allowed the estate tax to expire this year, but it is scheduled to come back next year with a top rate of 55 percent, unless Congress acts.

"It's time to take decisive action on the estate tax, and provide the permanent solution that Arkansas' hardworking farmers and small businesses are desperately seeking," Lincoln said.

 
sweet-a-kins

Asked by sweet-a-kins at 1:29 PM on Jul. 16, 2010 in Politics & Current Events

Level 34 (67,502 Credits)
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Answers (18)
  • It's double taxation and it's wrong. You're already taxed on everything you earn during your lifetime and the government thinks it's okay to tax that very same money again? Like a pp said, it's the middle class that really gets hurt.
    solamama

    Answer by solamama at 3:49 PM on Jul. 16, 2010

  • GB did away with it and now Oama wants it back. These 2 want to compromise and lower the rate.
    I THINK IT SUCKS PERIOD. andYou pay taxes on any money you make whether or not it is saved. So you
    work and save your ass off so you can retire and hopefully have money to leave your family if you die and cannot.
    Taxing this money and your estate is the same as stealing from you. Why on earth should they be allowed to tax
    your money again just because you died? It's a total money grab, nothing more and it is not right.
    itsmesteph11

    Answer by itsmesteph11 at 1:43 PM on Jul. 16, 2010

  • While I agree that 35% is way better than 55%, I don't understand why the government feels that it is entitled to what you have, simply because you die. That money is already taxed. And the interest that you make on it is also taxed. It just makes no sense at all! It is outright thievery, imo.
    29again

    Answer by 29again at 1:53 PM on Jul. 16, 2010

  • There should be NO estate taxes! Period.

    I am a former trust officer and I have seen these types of taxes ruin families. You would think they are meant for the "rich", but very often the "rich" turn out to be lower or middle class people inheriting land. I remember 1 in particular the property had been in the family since the land was granted in the mid 1800's. Three families lived on the farm/ranch..the parents and 2 kids w/their families. The estate taxes were so much the families had to sell out everything to pay them. They were left with practically nothing, including no jobs.

    Money and property within an estate has already been subject to fed/state/local income taxes. Adding an estate tax is taxing what has already been taxed. It is unconsciounable and is nothing more than thievery by the govt.
    yourspecialkid

    Answer by yourspecialkid at 2:01 PM on Jul. 16, 2010

  • I would just like to add that while 5 million seems like a lot, it isn't when land is involved. A single acre of land can be worth many thousands of dollars depending upon where it is located and what it is used for. This becomes personal for me because my sisters and I will inhererit property bought by our great great grandfather and handed down through the generations. We will have to see it because we won't be able to afford the monstrous taxes they are planning. I hate that, the land is a family heirloom to me. It makes me sad because it will probably go to a developer that will cut it into a million little pieces.
    yourspecialkid

    Answer by yourspecialkid at 2:09 PM on Jul. 16, 2010

  • The left-alone 55% is absurd...... Small Businesses and Farming Families would be hit extremely hard. The 35% would be a better figure for families.
    grlygrlz2

    Answer by grlygrlz2 at 1:50 PM on Jul. 16, 2010

  • Special is right. I know farmers who have incomes that hover in the $35,000 range, no where near rich. But they have land that has been in the family for 5 generations. Because of the 00's boom of putting McMansions on 3 acres in the country, their land is worth millions by a development standpoint, but not so much by a farming standpoint.

    With high estate taxes, the farmer's children have no choice but to sell. No farmer is going to be able to buy it because it's potential income is too low. So another small family farm is lost.
    MunchMunch

    Answer by MunchMunch at 2:39 PM on Jul. 16, 2010

  • You certainly managed to find fault with George H.W. Bush not honoring his "no new taxes" campaign promise....how could you possibly be okay with reviving ANOTHER tax?!
    LoriKeet

    Answer by LoriKeet at 1:31 PM on Jul. 16, 2010

  • Of course GWB doesn't want the estate tax....his friends and family are so rich,their Estates would be taxed a huge chunk and they wouldn't want THAT to happen,would they? The Greedy ......well, you know.


    LOL! Another misconception by those jealous of people that have more than they do. As a former trust officer I can tell you the really rich have the bulk of their holdings put away into trusts and other vehicles to protect them from these taxes.

    Estate taxes hit more lower/middle class families than they do the rich and it is because of property, not cash.
    yourspecialkid

    Answer by yourspecialkid at 2:12 PM on Jul. 16, 2010

  • solamama is right. It's a double tax. I think estate taxes are just plain wrong.
    May-20

    Answer by May-20 at 5:26 PM on Jul. 16, 2010

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