Democrats Vow To Bring Estate Tax Back

The federal estate tax expires at the end of the month -- but when it does, people who inherit a lot of money might want to hold off on spending it for a while.

Democrats are vowing to come back from their holiday break next year and pass an extension. And several key lawmakers say they'll make it retroactive.

The Senate today rejected a bill that would extend the estate tax for two months while Congress works on a more permanent solution.

The uncertainty is causing problems for tax planners. They say it's harder for elderly people to try to get their affairs in order.

This year, the inheritance tax is 45 percent on estates larger than $3.5 million. Smaller estates are exempt from the tax. So, that leaves less than 1 percent of all estates subject to the tax.

Under current law, the tax is supposed to temporarily disappear next year before returning in 2011 at an even higher 55 percent rate. But without an estate tax, many estates would be subject to a 15 percent capital gains tax -- which, under current law, they avoid.

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  • by US citizen for now Location: Washington on Dec 19, 2009 at 07:29 AM
    good point Nathan, my father is a millionaire that is 84 yrs old. He's the last of the real true Americans which worked hardest, fought the hardest in WWII and would give their shirt off their back to those in need. But, as this country spirals downward with the idiots, excuse me, two faced lying cheats with greedy selfish motives behind their every move, want to take from the ones who made a name for themselves and made money by their efforts and give it to people who are failures that don't deserve it. I know everyone aren't failures and it's the ones who can work that don't. they're like vampire bats sucking the blood out of the ones who're working and paying taxes. Congress and Obama are just larger vampire bats that suck. You're question is answered relating to how this country was 40-50 yrs ago. We all were more uniform caring for others and everyone mainly worked for what they've got showing responsibility. Not like that now because a nation Under God has gone astray leaving God
  • by Nathan Location: Eastern NC on Dec 19, 2009 at 01:43 AM
    If I had $3.5 million dollars ($3,500,000) or more, I don't think I'd care if I had to pay 45% of it, because that would still leave me with $1,925,000. That is a nice chunk of change to just have. Working, I might earn that in my lifetime, but I don't think so. So while my wife and I struggle to pay the bills, and we both work full time, pardon me if I have a hard time finding a tear for a multimillionaire who paid a million and a half in taxes. This tax isn't going to affect people who work full-time. I don't love the idea of a tax any more than any of you, I don't think, but do you think the rich sympathize with us at all? One bit? Should they? Maybe not, but that goes both ways. Still... Republicans wanted the working class to pay for their war for oil, and now the Democrats want the wealthy class to pay to fix the recession the Republicans left us. Can't we have leaders that get all of us, regardless of class, to help all of us, also regardless of class?
  • by Obama gona ram ya Location: United Socialist States on Dec 18, 2009 at 07:01 PM
    Gotta love the fact we are being taxed on everything we own, eat, live in or want. We really really must be thankfuk this year. Love me Some DEMOCRUDS!!!!
  • by Devil Dog Location: Greenville on Dec 18, 2009 at 02:51 AM
    Having to pay estate tax in Pennsylvania,it is another kick in the face on the homeowner. After lawyer fees, taxes, funeral costs etc I was in the minus column. Pennsylvania has an estate tax on any home of any value. I recommend everyone get a will and be specific!
  • by B Location: NC on Dec 17, 2009 at 03:42 PM
    To all the people with jobs, homes cars,ETC. I hope you lose everything you have because of your vote, to the rest of you "people" that voted for the dems, guess you got what you wanted.
  • by US citizen for now Location: Washington on Dec 17, 2009 at 12:53 PM
    Obama is raising the current inheritance tax which is 45% to 55%!!!!! CHANGE. You better not inherit anything. Parents, sell your belongings and spend it all before the government gets 55% of it!!!!!do it now while you still can save 10%. Do it no matter how much your children cry and beg you not to sell. Big Government is moving in no matter how we tax payers like it. wooo, progressive socialist/communist liberals. wooo, they want you and your money to do what they want to with it. they can benefit greatly without your knowledge. vote progressive because we really do care for the right of minorities. woooo, we're good political left wingers. the good ones. I think I'm getting very sick. ralppppp
  • by ANTONYO on Dec 17, 2009 at 11:18 AM
    Well people wanted a change ,that is only pocket change in your money
  • by pete Location: grifton on Dec 17, 2009 at 09:35 AM
    Ted you are late.the 2004 N.C legislature enacted an ex post facto(retro active) law to make law abiding people criminals.Even Russia and Iran ban ex post facto law in their constitutions.the law went back and said anyone even though their rights to own firearms was restored that the law now ment anyone ever convicted of a felony could not own a firearm.The N.C Legislature committed a felony in doing this,violating the 18th amendment title 241 of the U.S constitution.Barney Britt Verses State of North Carolina aug 29th 2009 N.C supreme court.N.C is a bad state to live in when it comes to both the U.S and N.C constitutions.
  • by US citizen for now Location: Washington on Dec 17, 2009 at 08:36 AM
    Louisiana Senator, Mary Landrieu (D) Is presently asking Congress for 250 BILLION DOLLARS to rebuild New Orleans . Interesting number... What does it mean? A. Well..If you are one of the 484,674 residents of New Orleans(every man, woman, and child) You each get $516,528. B. Or..If you have one of the 188,251 homes in New Orleans, your home gets$1,329,787. C. Or..If you are a family of four... Your family gets $2,066,012. Washington, DC HELLO! Are all your calculators broken?? Building Permit Tax CDL License Tax Cigarette Tax Corporate Income Tax Dog License Tax Federal Income Tax (Fed) Federal Unemployment Tax (FU TA) Fishing License Tax Food License Tax Fuel Permit Tax Gasoline Tax Hunting License Tax Inheritance Tax Inventory Tax IRS Interest Charges (tax on top of tax) IRS Penalties (tax on top of tax) Liquor Tax Luxury Tax Marriage License Tax Medicare Tax Property Tax Real Estate Tax Service charge taxes Social Security Tax Road Usage Tax (Truckers) Sales Taxes etc. Obama Taxes
  • by Kimo Location: Belhaven on Dec 17, 2009 at 07:56 AM
    It would be interesting to know how many of the dems estates would be hit with the tax if they were to (God forbid) perish any time soon. Surely Kerry and Pelosi have a large enough estates to qualify for estate tax. And how about Kennedy, any estate tax on his estate. I'm sure there are plenty more. Or could it be that these do gooders have their finances figured out in such a way that they (or their estates) won't be bothered with those pesky taxes. Or is there some kind of secret exemption that makes it unnecessary for rich politicians to pay taxes.
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