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The estate tax will once more dip into the till of the elderly rich come 2011, unless Congress passes legislation to keep it in deep freeze. This has numerous estate-holders and kin worried, reports the Associated Press. And based on Rep. Cynthia Lummis (R-Wy.), some individuals are opting to the escape hatch from life-sustaining medical treatments.

Estate tax: It is don’t assume all within the family

Rep. Lummis would not say who the people were that might end up ending their life early to stop the estate tax from getting to their family although she did say individuals with companies are considering it. Many ranchers and farmers in Wyoming would rather pass along their companies to family than see it go to the govt. “If you have spent your whole life building a ranch, and you also wanted to pass your estate on to your kids, and also you were 88-years-old and on dialysis, and also the only thing that was keeping you alive had been that dialysis, you might make that exact same decision,” the AP accounts Lummis saying.

Most Bush tax cuts go to the wealthy

The death tax, or the 45 percent estate tax, had been something Bush’s tax cuts got rid of. It had been an ideal time to be an heir to a dying estate holder. Inheritance, certain wage income, interest, dividends and capital gains were all shielded from the govt. Since 1916, all estates less than $3.5 million, or $7 million for those married, have been tax exempt while all estates in 2010 were tax exempt. Tax rates on estates will go up to 55 percent in 2011 when estates under $1 million can be the only ones exempt. A Tax analyst, Joseph Thorndike, spoke with the Wall Street Journal. He said that going from to 55 percent would be “the largest increase in a major tax that (the United States of America has) ever seen.”

Citations

Newser

newser.com/article/d9j5lab81/wyoming-congresswoman-says-some-constituents-planning-to-die-before-dec-31-estate-tax-rise.html

Did Big George duck the tax?

youtube.com/watch?v=uPqn2Zr0r-Y