Current Estate Tax provisions Expire in 21 Months
We just returned from meetings in Las Vegas, Nevada, and we can’t help but make the comparison between everyone that’s hoping to hit 21 at the tables, and people hoping they will die within the next 21 months before the estate tax returns to historic levels crushing private businesses and costing jobs.
It is unimaginable that anyone could celebrate this temporary reprieve, when in fact, the ASSET proposal offers permanent relief if the estate tax burden, while Congress can continue to debate the requirement to have one. By changing the colleciton method, we do away with the closing of businesses that can’t come up with 35%, 45% or even 55% in cash to pay the tax man. In fact, the ASSET method would change the way taxpayers are likely to behave because they wouldn’t have to hide assets. Instead, they simply pay the tax based on their AGI, at thei highest levels.
Congress needs to act now because nothing will happen overnight. Everyone believed they would never allow the 2010 temporary elimination, but it happened. Everyone believed they would never do another Continuing Resolution, and they did. We know that Congress is paralyzed and will only react under extremes. We need to continue to expand the grassroots effort to get the word to all members in their home states that this current Estate Tax provision must be acted on before the next 21 months is up.
Let’s not get bogged down in a 4-5 year complete Tax Reform overhaul effort. This tax is costing jobs today, for a part that only amounts to 1% of the total Treasury collection. Act now to help get the ASSET method in place.