One of the hardest things to do in life is burying a loved one. However, if you are the heir of an individual who owns property that is valued higher than $1 million, you may soon end up paying 55%, meaning that the US government would own more of that property than you would. That is, if Congress decides to trip over the ‘fiscal cliff’, allowing for the Bush tax cuts to expire. Business Week reports:
If Congress does nothing, as would be the case if the Democratic bill and no others became law, the exemption would drop to $1 million and the rate would rise to 55 percent. Under that regime, the tax would affect about 2 percent of estates, or 55,200, according to the JCT.
However, Democrats are willing to ‘graciously’ compromise, saying that a $3.5 million property would only be taxed at a 45% rate. Awesome.
Dynasty Trusts will make sure the rich wont pay anymore,just us poor citizens.
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