Monday, December 6, 2010
What About the Estate Tax?
It looks like both sides are starting to talk about some sort of compromise on the Bush tax cuts but I have not heard much about estate taxes. If we do nothing then on Jan 1 the estate tax rate goes to 55% of any amount over $1 million. With all this "talk" about wanting to be friendly to small businesses, not too many will make it to the next generation if they have to be sold to pay estate taxes. The Joint Committee on Taxation found that moving to a $1 million threshold will impact10 times more small businesses and farms than would a Republican proposal with a $5 million threshold.