Why the Estate Tax Sucks

Why the Estate Tax Sucks
By: Nicholas A. Dunlap, CPM

If you think it’s bad now, just wait until 2013. When Obama signed H.R. 4853 last month, he agreed to increase the Estate Tax from 0 to 35% in less than two years on individuals with an estate value of $5 million and couples with an estate value of $10 million. When you hear the next part, you will think the first bit was generous. In 2013, the estate tax will automatically increase to 55% on estates with assets totaling just $1 million dollars.

So what is the estate tax? The estate tax is the tax imposed on the transfer of the estate of a deceased person. Of course, it’s much more correct to use the term “estate tax” than “death tax” which tends to describe more accurately what the tax is. Someone dies, leaves property to relatives and grieving relatives get hosed by the tax man.

The numbers are astonishing. Over 170,000 households, 29,000 privately held corporations, 22,000 farms & 14,000 real estate investment partnerships will be subject to the tax in 2011 alone. Based on today’s numbers, over 50% of all households in the United States will be subject to the estate tax by 2048, which is when today’s twenty somethings are of retirement age.

The best estate tax? No estate tax.

*Please read the report here: http://www.nodeathtax.org/uploads/view/2325/cost_of_compromise.pdf