October 10, 2012
Refresher on The Presidential Candidates and Their Stance on the Estate Tax
Currently, the maximum federal estate rate is 35% and estates valued at $5.12 million are exempt from the tax. President Obama would like to raise the maximum rate to 55% and reduce the exemption threshold to $1 million which is what will happen if Congress fails to act. [Note that other reports indicate Pres. Obama would be satisfied with a $3.5 million exemption with a 45% maximum rate.] On the other hand, Mitt Romney is campaigning that he would repeal the tax altogether, explaining that doing so would help farmers with as little as 150 acres of land. Romney's critics point out that scrapping the estate tax would help Romney and his family.
See Geoff Holtzman, Romney Says He'd Repeal Estate Tax, Talk Radio News, Oct. 9, 2012.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.
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(That should be "i.e." obviously.)
Posted by: ARS | Oct 10, 2012 3:31:03 PM
Actually, Obama wants to return the estate tax to 2009 levels, i.e., a 45% top rate with a $3.5 million exemption.
Posted by: ARS | Oct 10, 2012 3:31:50 PM
POTUS has a 3.5 million exemption and 45% rate already in his budget.
Posted by: Brian J. Cohan | Oct 10, 2012 6:43:28 PM
With all due respect, I don't think Obama has ever said he wants to raise the maximum rate to 55% and reduce the exemption threshold to $1 million. From the articles I've read, Obama wants a 45% top rate with an exemption amount of $3.5 Million.
Posted by: Kevin Pollock | Oct 11, 2012 7:44:03 AM