Democrats and Republicans compromise on death tax rates for two years
(Alexandria, VA) – Yesterday Democrats and Republicans reached a potential agreement on various tax issues. What President Obama failed to emphasize in his speech is that he is delaying the big discussion on the death tax another two years.
“The death tax will come back on January 1, 2011 with a tax exemption of $5 million for individuals and $10 million for couples. The tax rate will be at 35% and both of these will last for two years.
“While this is better than the death tax rate of 55% that would have come back on January 1st, this is not the way to spur economic growth” said Jim Martin, Chairman of the 60 Plus Association. “What we need is permanent repeal of the death tax so that families and small business owners will have confidence that their assets will not be taxed for a second or third time when they die. This is the most burdensome and unfair of all taxes.”
“The compromise is temporary and will only delay the same discussion for another two years. What is needed is a permanent repeal, once and for all, of the death tax. Economic growth starts with the middle-class and we must do all we can to assure them that once they die, their heirs won’t have to deal with the emotional toll of seeing the business that their parents started, being taken away, penny by penny, by Uncle Sam.”