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Editor: Paul L. Caron, Dean
Pepperdine University School of Law

Friday, June 11, 2010

Senate Is "Close" to Estate Tax Compromise of $5m Exemption, 35% Rate

Tax Analysts Sam Goldfarb, Kyl Says Momentum Is Building for His Estate Tax Proposal, 2010 TNT 112-2 (June 11, 2010):

Senate Finance Committee member Jon Kyl, R-Ariz., said June 10 that he is "pretty close" to gathering the 60 votes needed to pass a bill that would establish the estate tax at a 35 percent top rate with a $5 million exemption level.

Although many Republicans have long wanted to abolish the estate tax, and many Democrats favor continuing the tax at its 2009 levels, Kyl has been among a few senators pushing for what they see as a compromise between those two approaches.

The estate tax expired at the end of 2009 but is scheduled to return in 2011 with a 55% top rate and a $1 million exemption. The House in December passed H.R. 4154, the Permanent Estate Tax Relief for Families, Farmers, and Small Businesses Act of 2009, which would make permanent the 2009 estate tax levels with a top rate of 45% and a $3.5 million exemption.

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Jon Kyl on extending unemployment benefits for 82,000 Arizonans:

"Continuing to pay people unemployment compensation is a disincentive for them to seek new work" (Unemployment compensation maxes out at $265 per week in Arizona)
---Source: Arizona Republic March 2, 2010.

Jon Kyl's estate tax cut is apparently unfunded--no offsetting spending or new taxes. It will cost around $15 billion per year. It will help less than 300 estates per year in Arizona, nationally, less than one half of one per cent of the population.
---Source: IRS Statistics of Income Division

Kyl's hypocrisy is supreme among US senators, and that's saying something.

But his unctiousness while he pontificates about the debt at the same time he proposes another unfunded tax cut for the wealthy ought to make the other 99.5% of us puke.

Posted by: jimharper | Jun 11, 2010 8:47:24 PM

Taxing the assets of people who have saved to pay benefits to people who won't work or don't report earnings will make anyone puke. If there is one employed illegal alien it is because someone drawing benefits won't do the job.

Posted by: Charley | Jun 15, 2010 10:04:17 AM