Donald Marron from Urban Brookings likes to Blog about economic issues, including the latest entry about the President’s budget. The real question is what does the President really mean with this current proposal?
According to Mr. Marron’s review, the estate tax proposal by President Obama in the new budget is to return to the 2009 level: 45% and 3.5 Million exemption. We all know what can happen when there is no agreement in just 20 short months: 55% and a 1 Million exemption. No one can predict what the final outcome will be, but if Congress and the White House will consider the ASSET method, they both win, and so does small business.
The coalition of people that are part of ASSET believe that if the estate tax must be paid, let’s pay it while we have the resources to do so and not cause the liquidation of a business to pay it.
Mr. Marron is right, it all depends on your interpretation of the President’s budget whether it raises or lowers taxes…but we know for certain that the method of estate tax collection will hurt no matter what the rate. It’s time to think outside the box and change the debate.