Thursday, March 26, 2009

Death smiles upon us all

I've been wondering about this (via Monkey Cage).
Because of a law that the Congress passed in 2001, the estate tax, which at is 45 percent this year with an exemption up to $3.5 million in assets, will be entirely repealed in 2010 before abruptly returning to its former rate of 55 percent rate in 2011.
They say that we tax the things we want to discourage and subsidize the things we want to encourage. Well, next year should be a real test. Financially speaking, next year is the best year to die in America. More properly stated, next year is the best year to have a wealthy relative die. You'll receive your inheritance tax-free. It will not be a good year to be on life support.

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