On Wednesday, the Senate voted down a proposal to make the temporary repeal of the estate tax a permanent part of our tax code. The proposal was made by Republican Senator Jim DeMint from South Carolina and was voted down 39-59 by the senators attending the session.
Meanwhile, many exorbitantly wealthy people who an estate tax would affect have voiced their support for its reinstatement over the past week. A former Treasury Secretary, an heir to the Walt Disney fortune, and others echoed the opinions of uber-rich individuals such as Bill Gates and Warren Buffet that reinstating the estate tax is the right thing to do. New life was given to the debate after billionaire Yankees owner George Steinbrenner passed away last week, passing his tremendous fortune to his heirs tax free.
The estate tax, which actually only taxed less than 1% of the wealthiest individuals who passed away in 2009, had gradually increased its exemption levels over the last decade and was then repealed for 2010. If no changes are made, the estate tax will be reinstated January 1, 2011 with a $1 million exemption. While reinstatement at this level could affect far more people than originally intended, it is likely that the newfound energy surrounding this debate will encourage Congress to enact a new estate tax law before the end of the year.
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It will be very interesting to see and hear the debates on this subject.
Thank You for the awesome post.