Estate Tax Confusion and Disagreement = Congressional Stalemate
An article in yesterday's Forbes.com helps explain why there is such a stalemate with Congress on what action to take with regard to the estate tax. As we've discussed before , for the year 2010 there is no estate tax. Based on current law, beginning January 1, 2011 the estate tax returns with a vengance. The amount of assets an individual can exempt from estate taxation will be $1,000,000 and the maximum estate tax rate will be 55% (on estates with more than approximately $1.25 million).
The Forbes.com article is entitled "Billionaires Battle on Estate Tax." The report provides some insight on at least some of the reasons Congress so far has been unable to come to a consensus and enact new estate tax legislation. There are two very large and influential groups of billionaires on each side of this argument. In support of higher estate taxes is the group "United for a Fair Economy ." On the other side, seeking permanent repeal of the estate tax altogether is the "Family Business Institute ." Both groups are lobbying Congress hard to take action before the August Congressional recess.
Both groups have virtually unlimited resources and strong political connections. Hence, the stalemate in Congress.
Unfortunately, neither of these groups of billionaires are the ones who are most impacted by the uncertainty surrounding the ultimate resolution of the estate tax controversy. Middle class families and small business owners and their families , are the ones who are suffering most from the uncertain status of the estate tax. Every small business owner, and every family with a net worth between $2 million and $10 million, literally millions of people , are unable to plan for the estate tax until there is more clarity. The inability to properly plan causes small business owners to restrain capital expenditures and employment. Just what our economy does not need.
Everyone who is associated with small businesses, including the owners, employees, creditors, suppliers, professionals, customers, the insurance industry, the advertising industry, and real estate investors who have empty store space in their strip shopping centers, should be lobbying Congress just as hard as the few hundred billionaires. While the billionaires may have influential ties and money to fund their lobbying efforts, all of the small business owners, and the people who rely on small businesses for their financial livlihood amount to millions of votes. Congress will listen to those votes with the elections looming in November as much, or more, than the few hundred people whose families are probably the least impacted of all of our society by what happens with the estate tax. After all, if someone inherits a few hundred million, it doesn't really matter that the IRS also got a few hundred million. But, if the surviving family members of a small business owner have to sell the business or the farm to pay the estate taxes, jobs are lost, employees go on unemployment, creditors may lose, stores become vacant, advertisers lose revenues, and professionals lose fees.
If you are uncertain how the estate tax changes may affect you and your family, you should consutl with your estate planning attorney to learn how you can prepare yourself for the inevitable changes that are coming when Congress does decide to act.
The Forbes.com article is entitled "Billionaires Battle on Estate Tax." The report provides some insight on at least some of the reasons Congress so far has been unable to come to a consensus and enact new estate tax legislation. There are two very large and influential groups of billionaires on each side of this argument. In support of higher estate taxes is the group "United for a Fair Economy ." On the other side, seeking permanent repeal of the estate tax altogether is the "Family Business Institute ." Both groups are lobbying Congress hard to take action before the August Congressional recess.
Both groups have virtually unlimited resources and strong political connections. Hence, the stalemate in Congress.
Unfortunately, neither of these groups of billionaires are the ones who are most impacted by the uncertainty surrounding the ultimate resolution of the estate tax controversy. Middle class families and small business owners and their families , are the ones who are suffering most from the uncertain status of the estate tax. Every small business owner, and every family with a net worth between $2 million and $10 million, literally millions of people , are unable to plan for the estate tax until there is more clarity. The inability to properly plan causes small business owners to restrain capital expenditures and employment. Just what our economy does not need.
Everyone who is associated with small businesses, including the owners, employees, creditors, suppliers, professionals, customers, the insurance industry, the advertising industry, and real estate investors who have empty store space in their strip shopping centers, should be lobbying Congress just as hard as the few hundred billionaires. While the billionaires may have influential ties and money to fund their lobbying efforts, all of the small business owners, and the people who rely on small businesses for their financial livlihood amount to millions of votes. Congress will listen to those votes with the elections looming in November as much, or more, than the few hundred people whose families are probably the least impacted of all of our society by what happens with the estate tax. After all, if someone inherits a few hundred million, it doesn't really matter that the IRS also got a few hundred million. But, if the surviving family members of a small business owner have to sell the business or the farm to pay the estate taxes, jobs are lost, employees go on unemployment, creditors may lose, stores become vacant, advertisers lose revenues, and professionals lose fees.
If you are uncertain how the estate tax changes may affect you and your family, you should consutl with your estate planning attorney to learn how you can prepare yourself for the inevitable changes that are coming when Congress does decide to act.
Posted by Randy Coleman at 7/22/2010 8:04 AM 
Categories: Estate Taxes,estate planning
Tags: Jacksonville estate planning attorney estate tax estate planning attorney estate planning
Categories: Estate Taxes,estate planning
Tags: Jacksonville estate planning attorney estate tax estate planning attorney estate planning
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