Could the death tax be repealed? | AccountingWEB

Could the death tax be repealed?

Republicans and democrats unite! Or at least, join forces to repeal the inheritance taxes that require Americans to pay estate taxes on over $675,000 in assets. In the past, Republicans have spearheaded this effort with little support from their Democrat counterparts, but that’s changing. Supporters now include Republicans and Democrats alike.

“There is broad support for this bill,” said Rep. Jennifer Dunn, R-Wash. “The death tax is unfair, unethical and unnecessary.”

The current exemption is scheduled to increase to $1 million by 2006, but supporters of the repeal say that the up to 55 percent tax would still hit small business owners and land-rich farmers where it hurts. They further speculate that the wealthiest individuals would take advantage of tax shelters to avoid paying their fair share of estate taxes due.

Among the most notable Democrat supporters is First Lady Hillary Rodham Clinton. She supports a $1.75 million exemption for family farms and family-owned businesses. The conclusion seems to be that the death tax doesn’t just affect the rich; it’s affecting all levels of Americans.

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