The GOP has tried for years to repeal the Estate Tax, and Democrats have naturally resisted. Finally, the GOP leadership has decided to move forward with a very fair compromise.
Under the House’s compromise, which probably will come to a vote tomorrow, estates worth as much as $5 million — $10 million for couples — would be exempt from taxation indefinitely.
The tax rate on estates worth more than the exemption level up to $25 million would be set at the same tax rates that apply to capital gains — now 15 percent but scheduled to rise to 20 percent in 2011. The rate for estates worth more than $25 million would be twice the capital gains rate. The bipartisan Joint Committee on Taxation estimated the estate tax cut would cost the government $279 billion over 10 years.
Democrats should support this compromise. The current Estate Tax rates are too high, thus forcing many business owners to spend way too much time and moneytrying to avoid the tax. The new rates are fair, so let’s get it done.