Taxation & Estate Planning

The Future Of The Estate Tax

By Michael D. Bonasera, Esq.

[I know!, I just borrowed another title! I’m so ashamed.] I don’t think Professor Berry will mind though if I give him proper attribution. Thanks Professor!

He writes in this post about the various suggestions being made to congress on ways to overhaul the US’ tax system.

The committee heard from three academics whom the panel encouraged to propose far-ranging plans to revamp the estate tax.

For example, Lily L. Batchelder, associate law professor at New York University School of Law, discussed replacing the estate tax system with a comprehensive inheritance tax. Under this regime, an individual “inheriting an extraordinary amount over his lifetime would pay income tax and a flat 15 percent tax on a portion of his inheritance,” she said. She said such a change could be implemented without gain or loss to the U.S. Treasury if the first $2 million in lifetime inheritances were exempt from taxes.

Which is interesting… A revenue neutral option that effectively fixes what we now call the individual exemption, at $2 million.

Full post as published by The Ohio Trust & Estate Blog on March 16, 2008 (boomark / email).