Does the Estate Tax revert back to the level it was at in the Clinton era on Jan. 1, 2011??

[madinmaryland]

Might that why Boner & Mc.Co be so concerned about it??

[pnwmom]

1. Reverts back to a $1 million exemption, with a top of 55%. n/t

[madinmaryland]

4. Ya think this might be the real reason Boner and Co. are so concerned

about this, that they are using the Upper income taxes as a ruse?

[pnwmom]

8. I think they want everything. Lower income and estate taxes. n/t

[pnwmom]

2. self-delete (dupe)

[Lasher]

3. The exemption reverts to $1M, which was the 2002 & 2003 level.

The maximum tax rate reverts to 55%, which was what it was in 2001.

[gateley]

6. How different is that from what Shumer proposed? Thanks.

[Lasher]

11. I didn't know Schumer had proposed anything lately about the estate tax.

[pnwmom]

13. I think the $1 million refers to Schumer's proposal to raise income taxes

on those above that level.

[Lasher]

22. OK.

I guess that's one of the measures that failed in the Senate yesterday.

[gateley]

16. Oh! I totally missed that it's the ESTATE tax we're talking about -- sorry! nt

[pnwmom]

12. Two different things: he was talking about income taxes.

The $1 million Schumer proposed related to the income tax. He proposed retaining current rates except for people with annual incomes over $1 million yearly (and letting those people's rates rise to Clinton levels.)

The other $1 million has to do with how much someone can leave at death without incurring an estate tax. Last year it was $3.5 million. This year the estate tax expired completely. Next year, unless the law is changed, the exemption reverts back to $1 million. Anything above that would be taxed at a rate of 45-55%.

[gateley]

18. Got it- someone corrected me, thanks. Yeah, I thought we were talking about

the income tax.

When my dad died in 1990, I think there was a 1.2 million exemption - that amount sticks in my mind for some reason.

[pnwmom]

20. You're likely right. The exemption amount went up in steps

for a number of years, starting at $600,000 and ending at $3.5 million.

[gateley]

5. Do you know what it is now? (I don't.) nt

[madinmaryland]

7. ...

Zero. Until the end of the year.

[gateley]

10. No - wait. I'm missing something. They pay ZERO taxes? Explain it to me. Thanks.

[madinmaryland]

14. Seriously. They pay ZERO taxes. Not much more to explain.

[gateley]

19. I was confused - I thought we were talking about income tax, (obviously it was

only me :7) others set me straight. Thanks.

[madinmaryland]

25. Sorry. I thought you knew this was about estate taxes, which is what the

repukes call a death tax.

[pnwmom]

15. Technically, the estate tax expired at the beginning of the year. HOWEVER,

there is almost no chance that it will actually be left that way.

At least one of the income tax bills that they just failed to pass contained an unrelated provision related to the estate tax. This provided that the exemption will return to that of two years ago -- $3.5 million -- and would be retroactive to January 2010. Most people think that this will end up being in the final bill, because both Dems and Rethugs basically agree on that.

[bemildred]

9. Zippo, Nothing.

I have seen stories about how the rich were planning to die to take advantage of it.

[Historic NY]

17. Old rich people will be dying in droves in 12/31/10 to avoid the tax.

[pnwmom]

21. Someone better tell them not to bother. It's almost certain

that whatever tax is put into place, it will be retroactive to January 2010.

[no_hypocrisy]

23. Unless the estate tax is "extended" past 12/31/10, the tax on estates is reinstated.

I'm sure elderly Americans with assets have already consulted their attorneys to "update" their Wills to include an Ad Terrorum" clause that prevents distribution of his/her estate to heirs/beneficiaries if the Testator/Testatrix dies under "mysterious" circumstances.

[no_hypocrisy]

24. Dupe. Sorry.