The Washington Post published an editorial piece titled “Democratic Senators take issue with the estate tax” on 12/11/2012 and ASSET could not agree more that now is the time to change the estate tax. But even under the Administration’s plan, we can correct the course of action that the estate tax makes where very rich never pay.
Whether applied to the current tax rate or to the Administration’s proposal of 45% w/3.5 million exemption (projected revenue of $276 Billion over ten years) ASSET’s proposal simplifies the collection method and stops job losses and fire sales of farms and businesses immediately. It guarantees the government the same tax revenue and a substantial increase from capital gain tax on sales of estate assets and other economic benefits.
Annual Transition Charge on AGI
- 35% w/ $5 million exemption = 0.66%
- 45% w/ $3.5 million exemption = 1.28%
- 55% w/ $1 million exemption = 2.47%
Even the 2.47% charge per year is less than people with AGI’s over $1 million a year are spending on compliance expense which would cease immediately.
ASSET makes sense. In Washington where little makes any logical sense, ASSET proves to be a simple method to assure the government maintains the same revenue and still maintains an estate tax without damaging the economy.