Buffet Testifies that Government Should Keep the Estate Tax Alive

Earlier on this blog, I discussed expected estate tax developments and their impact on the estate planning of many individuals.

Notably, not all those affected by the expected estate tax increase in 2011 oppose it. Billionaire investor Warren Buffett testified at a Senate committee hearing in favor of keeping the estate tax alive and proposing various amendments to make it more fair and workable.

Jeanne Sahadi, Buffett: Phrase 'death tax' is 'dead wrong', CNNMoney.com, Nov. 15, 2007 reports:

Those, like Buffett, who oppose repeal say it would be too costly for the government to give up the tax revenue.***

Buffett said he would raise the amount of estate assets exempt from the estate tax from the current level of $2 million to $4 million and end up with a top rate higher than 45 percent.

But, he said, he'd put in a more gradual slope in rates in terms of how heavily assets above that $4 million are taxed. He also indicated he might include an exemption for small family-owned businesses so that they wouldn't be forced to sell off assets to meet their estate tax bill.***

Buffett noted that he thought the code should be more progressive - meaning those who make more should pay even more than they do now relative to those who make less. "We ought to do more for [low-income Americans] and take more out of the hides of people like me."