Skip to comments.Two senators propose reinstating estate tax (Democrat Blanche Lincoln and Republican Jon Kyl)
Posted on 07/14/2010 11:51:41 AM PDT by SeekAndFind
Two senators, a Democrat and a Republican, have reintroduced a proposal to reinstate the estate tax, which lapsed this year amid a row among lawmakers over taxing the wealthy when they die.
Democratic Senator Blanche Lincoln and Republican Senator Jon Kyl late on Tuesday reintroduced a plan to tax estates over $5 million at a rate of 35 percent. The estate tax that expired last year had taxed estates at a rate of 45 percent, above an exemption of $3.5 million for individuals and above $7 million for couples.
There is no estate tax in 2010 because lawmakers last year failed to reach a deal to extend the tax. The House of Representatives last year had passed an extension of the 2009 rates, but senators clashed over the level of the tax.
Without action, under current law the tax will rise to 55 percent
(Excerpt) Read more at reuters.com ...
Several billionaires have died this year, escaping the estate tax, including former New York Yankees owner George Steinbrenner.
I thought it automatically renewed?
If not Kyle needs to be defeated.
Just what we need. Work all your life, pay all your taxes and then when you die punish the surviving family. You gotta love this country. /sar
The estate tax comes back in 2011 with an exemption amount of $1 million. Kyle wants to raise that to $3.5 million which is where it was last year. He should be commended not defeated.
RE: I thought it automatically renewed?
Without action, under current law the tax will rise to 55 percent, with an exemption level of $1 million.
Kyl and Lincoln want to make it less onerous (see their proposal above).
I disagree with them of course. I want it SCRAPPED altogether, permanently.
He should be horsewhipped for even thinking about it at all.
As usual Reuters only presents a small part of the story... no mention of small family owned businesses impacted by this. Oh no, they just talk about “the wealthy” and bring up Steinbrenner. Way to stroke that class-envy organ, Reuters.
Taxes were already paid on money earned. Estate tax is open theft.
“I want it SCRAPPED altogether, permanently”
Dittos. I have no idea what Kyl is thinking. I’m willing to bet he is not alone among the Republicans. Graham and McCain come to mind.
They just HATE that the Steinbrenners will not have to sell the Yankees to pay the estate tax. They hate it!
I may be wrong, but AFAIK the 2010 Congress could STILL pass a change in the estate tax for 2010.
This is like saying, “gee, for a fat person you don’t sweat much!”
Thanks a heap, creeps.
The headline is not accurate. Unless a new law is passed, the estate tax next year will take 55% of the fair market value of a decedent’s estate above a $1 Million exemption.
‘Why I’d horsewhip you, if I had a horse!”
Death taxes are an abomination. Good Lord, one has to pay the government in order to die.
Trusts. The only answer.
Which is yet another example of why theres no substantive difference between dems and republicans. They whine when the other party is in power and does something egregious yet never find the time to repeal when they’re in power. Its always one excuse or another. Im done w/ them both.
This is why I’m not getting my hopes up if Republicans retake Congress. With Kyl reaching across the aisle, it’ll be the same liberal crap that will pass.
There should be no estate tax, period. The friggin government gets too much money as it is.
What's wrong with Kyl proposing to eliminate the estate tax permanently?
Blanche Lambert Lincoln and family received around $715,000 in farm subsidies over a ten year period. She voted against putting a cap on the federal money.
As usual, she is for taking the people’s money until she is required to pay. ;0)
Light up kyl phone and ax why are Repubs raising taxes?
Phone: (202) 224-4521.
Pray for America
Trusts are a good answer, except you do not want to try rolling a regular IRA or a 401K into a trust. It’s my understanding that you have to cash out, pay the onerous taxes, and then find some instrument the trust can include.
Anyone have further info?
PS: If I were a farmer or small-business owner I’d be looking for a good estate attorney right now!
At least that's what I HOPE he's saying.
Although at 55% 0bama won't be able to blame half of his current problems on Bush.
Sounds fine...if you don't plan to die before 2013. It's not nice trifle with peoples wealth, dead or alive.
He needs to be defeated regardless!
I agree. The really wealthy have ways around the estate tax with overseas trusts and foundations paying the kids and grandkids a salary. But the middle-wealthy have no such loopholes. A 5 million dollar exemption would really help those with middling wealthy relatives (like me) have some money to use for retirement when the elders die. Otherwise, people like me are out a lot of money. Better half a loaf than none at all.
98 propose letting it lapse. The ‘Pubbies couldn’t/wouldn’t get it done when they had the chance and Hairy Reed will not let it come to the floor for a vote. This is symbolism over substance.
Hmm maybe Jane Fonda, Ted Turner, Ophara, Chris Mathews should give this some thought,,,,the tax should be Constitionaly barred actually.
So, what are you saying - that you WANT the estate tax to come back?? The estate tax is one of the taxes that Bush cut as part of his package of tax cuts that got the economy rolling again after the Clinton recession.
To date, the Senate has refused to either extend the Bush tax cuts or even make them permanent, so what exactly is the point you are trying to make?? What these two are proposing is better than what is due to occur.
Call it cynicism, but I suspect both Senators are trying to protect personal inheritances. By elevating the floor to a higher amount, i.e.,$1 million to $5 million could mean a lot to both of them I suspect.
Lincoln is like Beelzebub....she acts in haste to inflict as much damage as possible, knowing that she has but a short time remaining in power.............
I want it eliminated and replaced with nothing.
Since that's not going to happen, what Kyl and Lincoln are proposing will soften the blow a bit.
I'm saying nothing of the kind. I'm stating a fact. The 'Pubbies that everyone here thinks are going to save them did NOTHING to make the Bush tax cuts permanent when they had control of all 3 branches of government AND the opportunity to do so. What makes you think they are going to do anything now as the spineless minority party??? On 1/1/2011, the Bush tax cuts will expire and reintroduce taxes equal to ~$45 Billion. Even IF they regain control of the House and MAYBE the Senate, I sincerely DOUBT that they will do anything!! Where was all of this outrage over this issue YEARS ago when it might have made a difference??
We're hosed and what Kyl and Lincoln are trying to do is soften the blow!!
Why not propose 0%, Kyl?? Afraid of no longer being invited to the “right” DC cocktail parties?
Those who have been bad-mouthing Kyl on his proposal need to consider the alternative.
Namely, death taxes go to 55% in 2011 unless something is done in 2010.
If the Republicans win a majority in 2010, they will not have the votes to override an Obama veto of any death tax law done in 2011.
Fear not, Kyl is pushing for a 36% tax DECREASE in 2011. He’s steering a course between a rock and a hard place. If the RATs do nothing, the rate goes up to 55% and he has to sell them on dropping it down to 35%.
Senator Kyle needs to demand an elimination of the estate tax and have nothing to do with Blank Lincoln.
Senator Kyle needs to demand an elimination of the estate tax and have nothing to do with Blank Lincoln.
This is one of the worst articles I’ve ever seen from a real news source. It gets almost NOTHING right, and tells exactly the opposite story from the truth.
Under current law, the tax went to zero in 2010, and then in 2011 goes back to it’s original value, which is 55% on just about everything (over I think $600,000, or maybe a million, I’d have to look).
Last year the house tried to pass a bill that would actually re-instate the tax in 2010, but permanently set it to something in between 0 and what it is going to be starting in 2011. That effort failed because there was no liberal-left payoff for Obama in getting it passed.
Now, there are some who are trying to fix the problem that in 2011, it goes back to the pre-2001 law. This particular effort is a 35% tax on values over 5 million. My guess is the liberals won’t accept this, I think they want to tax more (maybe 3.5 million, or maybe less than that).
Whywould they consider that? They are like petulant children, who assume that whatever they want can magically happen if a republican in congress would just wish it hard enough.
I say they are too small-minded. If you are going to wish for something that can never happen, why not just hold your breath and wish for the republicans to impeach Obama?
There should be an exception for politicians who fattened their wallet at the public’s expense: 90% of everything. Just think, the Kennedy legacy would have been cut off at the knees years ago.
Maybe that’s what needs to happen. Huge tax increases and a prolonged recession. Voting Socialist should have consequences. A nice beating to the head will be an objective lesson for the next 30 years.
well blache may not be around much longer, lets hope the same for kyl
so just because he doesnt go full out socialist its fine and dandy you are probably content with the repugnicans plans to “repeal and replace” health care, I perfer repeal. people like you like government only if its republicans raping you.
A few points in response to your post.
1. Spelling, punctuation, and capitalization are our friend.
2. You don’t know me so you have no idea what people like me think of government.
3. I support repeal. I may support replace depending on the degree to which it ends the present level of government meddling in the health care industry.
4. If you want repeal any time soon you had better start supporting Republicans because a repeal bill is going to need a large enough majority in the house and Senate to override Obama’s veto and the R’s are the only party with a shot at getting that majority. I know it is a bitter pill to swallow. I don’t like it either, but that is the reality of the American political system.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.