Thursday, April 21, 2016
House Democrats Introduce Bill To Raise Estate Tax Rate
Accounting Today, House Democrats Introduce Bill to Raise Estate Tax Rate:
Rep. Sander Levin, D-Mich., the ranking member of the tax-writing House Ways and Means Committee, and other House Democrats introduced legislation Wednesday to restore the estate tax and gift tax rate and exemption level to the same amounts as in 2009.
At the beginning of January 2013, Congress passed legislation raising the estate tax rate to 40 percent (up from 35 percent), with an exemption for estates below $5 million, but indexed for inflation. Under current law, estates valued at or below $5.45 million ($10.9 million for a couple) are exempt from owing any estate tax.
The proposed legislation, The Sensible Estate Tax Act of 2016, would return the exemption and tax rate to 2009 levels, lowering the estate tax exemption to $3.5 million ($7 million jointly) and increasing the maximum tax rate to 45 percent. The bill would also restore the rates for the gift tax and generation-skipping transfer tax. It would reinstate the $1 million lifetime gift exemption and retain the annual $14,000 gift tax exclusion and unlimited spousal portability. A summary of the bill is available here.
Yes, let separate the gift and estate credit equivalents. One of the reasons that we have a unified credit is to eliminate any planning advantage between the two, outside of the annual exclusion. Yet for some reason Congress think separating them is a good idea. Is the plan to no longer add back prior year gifts.
Posted by: Michigan Tech | Apr 22, 2016 6:54:39 AM
Grabbing 45% of the labors of lifetime earned by hard work and by differing gratification and done solely to benefit their chldren and grandchildren. Does anything else better sum up what's wrong with the Democratic party? Oooh how I hate that party.
Posted by: Michael W. Perry | Apr 22, 2016 1:13:35 PM