The fear of death follows from the fear of life. A man who lives fully is prepared to die at any time.
- Mark Twain
While many people on Capitol Hill think the debate on the Estate Tax is over, because, after all, “they just passed a new law” changing the exemption level and rate in December…you have to understand that the current law is never called the current law. What do I mean?
In meeting after meeting with senior staff and elected officials, especially on one side of the aisle, we often hear that “when this is over we revert back to current law” or we hear “when this idea is scored, they have to take in to account the current law” meaning: 55% and $1Million exemption.
The great part about ASSET’s idea, it allows for the elected officials to continue to debate, argue and ultimtely decide on rates and exemption…but it stops killing jobs and businesses. If adopted, the ASSET collection method just changes when they collect the estate tax. And in the process, if the change ends up allowing for additional revenue, it reduces the amount of the estate tax. It’s a very targeted approach, that is fair, simple and efficient: the three hall marks of a correctly applied tax provision.