Saturday :: Nov 8, 2008

Recommended Tax Reform in the First Hundred Days

by Mary

The ultra wealthy ought to hope that one tax reform that the Congress should address right away is resetting the estate tax rate to what was paid during the Clinton years.

As the law currently stands, in 2009, $7 Million of an estate will be exempted from taxation, and in 2010, an entire estate (worth billions) can be passed on to the beneficiaries without any taxes. Yet, because of the cynical bait and switch mechanism used by the Republicans to hide the cost of this tax cut to the nation, in 2011 the estate tax reverts to what it was during the Clinton years.

Think about the terrible dilemma those beneficiaries would face if their ridiculously wealthy relatives did not die in 2010. They could lose out by billions or be tempted to do something drastic. Fortunately, we can keep them from facing that horrible choice. By rolling back this one tax cut to the Clinton days before 2010, we could make sure the incentives discouraging foul play could be set correctly and save the lives and the souls of the small number of people who are affected by the estate tax. And it would definitely help the public coffers when times are tough.

Repeal the Paris Hilton tax break before it's too late.

FWIW: Barack Obama supports repealing this tax break.

Obama said, "Domestically, our national debt and budget constrain us in ways that are going to be very far-reaching. And I think whoever is elected in 2008 is going to be cleaning up the fiscal mess that was created as a consequence of the president's tax cuts." Obama opposed repealing the estate tax: "Let's call this trillion dollar giveaway what it is--the Paris Hilton Tax Break. It's about giving billions of dollars to billionaire heirs and heiresses as a time when American taxpayers just can't afford it." Obama has proposed to "reverse some of those tax cuts that went to the wealthiest Americans." As Obama put it, "It's not as if rich people were suffering under Bill Clinton."

Mary :: 4:44 PM :: Comments (4) :: Digg It!