Congress Reconsiders Estate Taxes

Staff Writer, April 24, 2009

United States Congress is currently working on a bill to change the estate tax, which will eliminate any incentive for families and beneficiaries to keep their benefactors on respirators and life support for an additional year. This new law will create a void in estate taxes during 2010. Anyone receiving funds or property from an estate will not have to pay any taxes. However, in 2011, the tax will return and those with estates worth one million or more could be taxed up to 55 percent.

For many, this creates a motive to keep their loved ones alive until the next year. And, perhaps even more gruesome, a reason for a loved one to come off of life support before 2010 ends. To avoid these matters, President Obama is suggesting that the tax stay indefinitely at this year’s level- those who are left estates of $3.5 million are exempt from taxes, and anyone over that amount would be taxed at 45 percent. This taxation would only fluctuate as it needed with the rise of inflation.

The House of Representatives passed a budget resolution, which reflected the president’s idea. However, the Senate has yet to pass a similar measure.