Stalled Proposal to Cut Estate Tax Further Is Deeply Flawed and Should Not Be Revived
By Chuck Marr and Gillian Brunet
A proposal that four senators were developing — before negotiations stalled this week — to cut the estate tax beyond the generous parameters in place in 2009 was deeply flawed, relying on two budget gimmicks to mask its unaffordable cost.
The proposal would cost at least $60 billion more over ten years than making the 2009 rules permanent, despite soaring federal budget deficits, while benefiting the estates of only the wealthiest one-quarter of 1 percent of Americans who die.
View the full report:
http://www.cbpp.org/cms/index.cfm?fa=view&id=3189
http://www.cbpp.org/files/5-20-10tax.pdf 9pp.
Stalled Estate Tax Proposal Could Threaten State Revenues that Support Education, Public Safety, and Other Key Services
To reduce its overall costs, the stalled federal estate tax proposal a group of senators were reportedly negotiating may include a provision that would end the federal deduction that taxpayers can take for state-level estate and inheritance tax payments.
If wealthy taxpayers who face state-level estate or inheritance taxes no longer can get a federal deduction against those taxes, those taxpayers almost certainly will pressure state lawmakers to reduce or repeal those taxes. This could squeeze state revenues that support K-12 schools and colleges, public safety, and other vital services to help cut taxes on the estates of the wealthiest one-quarter of 1 percent of Americans.
View the full report:
http://www.cbpp.org/cms/index.cfm?fa=view&id=3185
http://www.cbpp.org/files/5-20-10sfp.pdf 4pp.
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