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Julie Garber

$3.5 Million Estate Tax Exemption, 45% Estate Tax Rate, and One Big Yawn

By December 3, 2012

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Last Thursday President Obama finally put his estate tax card on the table. Through Treasury Secretary Timothy Geithner, the president told House Speaker John Boehner that beginning in 2013 the estate tax exemption should be set at $3.5 million (down from $5.12 million in 2012) and the estate tax rate should be set at 45% (up from 35% in 2012). Obama has supported these numbers since he was a presidential candidate in 2008 and has included them in his budget proposals as president (these numbers actually went into effect for just one year in 2009), so those of us who have been monitoring the estate tax situation simply yawned - same thing, different year. More importantly, those of us who have been monitoring the estate tax situation are quite aware of a contingency of Senate Democrats who do not support Obama's estate tax stance and instead want to extend the 2012 exemption and rate (one even has gone so far as to say that he would support "scrapping the estate tax altogether"). All of this begs the question, will the president win the estate tax battle? I really don't think so.

December 10, 2012 at 11:02 pm
(1) ccyborg1939 says:

Please either email this to Mr. Perez ( although I suspect he has already read it) or post it on his tax site at the ESTATE TAX QUESTION I posted weeks ago.


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