« BACK  |  PRINT

RS

MEMBER DIARY

Death Tax Back in 2011; GOP needs to vote for 2009 Death Tax provisions

By: Alex (Diary)  |  April 20th, 2010 at 11:41 PM  | 

RESIZE: AAA

The House voted to extend the 2009 death tax provisions, but the Senate has yet to do so. This was because the GOP wanted to get more. Now, we are faced with the Death Tax back at its 2001 levels, which is far worse. A campaign needs to begin immediately to get the GOP in the Senate to vote for the 2009 extension that the House passed. If the Death Tax reverts back to its 2001 rules, it will be much worse. The Democrats will have the revenue they want, and will have no reason to support anything more but tax increases beyond what the eye can see. By extending the 2009 rules, some tax relief will be granted, and the position of repeal will seem like less of a dramatic change.

Instead, by not acting, the Republicans in the Senate have given a huge political gift to the Democrats. The Democrats get the taxes from those work that they so desperately wanted, while people who work will rightly be outraged that the GOP screwed them over by not understanding what was going down.

Now is the time to contact Republican members of the Senate to support the House bill for extending the 2009 rules. They failed us in 2005 when they did not repeal the Death Tax. They damn well better not fail us again by allowing the rules to revert back to 2001 rules. If they do, then it would seem that Democrats are doing better by business owners and farmers than are the Republicans, which would truely be a sorry sight.

COMMENTS

POSTING RULES  |  LOGIN TO COMMENT  |  REGISTER TODAY
  • usadying

    And is it just another progressive tactic to take one step forward and two steps backward to accomplish their agenda?

    • acnicholson

      45% rate, $3.5 million exemption ($7 million per couple).

  • acnicholson

    I find it interesting that a Redstate author has become the new mouthpiece of the DNC. Indeed, it would be great for Harry Reid, Nancy Pelosi, and not least, Barack Obama, if the GOP caved to their demands and supported a 45% death tax.

    Clearly, no one on the right wants the death tax to return at 55%. However, the debate right now is not between 55% and 45%, but between 45% and 35%.

    Senators Jon Kyl (R-AZ) and Blanche Lincoln (D-AR) plan to introduce legislation to lower the death tax rate to 35% and raise the exemption to $5 million. Ten Democrats voted for this legislation when it was introduced as an amemdment to the 2010 Budget Resolution. Those same Democrats are under heavy pressure to support a lower Death Tax.

    Even Max Baucus – chair of the powerful Senate Finance Committee – plans to start death tax discussions at 35% when the committee marks up tax legislation.

    A 35% Death Tax is the new starting point for negotiations. Clearly, that’s not nearly repeal, but it is a whole lot better than 45%.

    • Alex

      If it is indeed the case that 35% tax rate and whatnot are the starting point for negotiations, then that is wonderful, and my post is premature, obviously. That said, given the fact that Congress still has yet to fight over Financial Reform (i.e BS), immigration reform etc., it seemed to me that Congress would never get to the Death Tax, allow it to reappear in its 2001 incarnation, and then the Democrats would say, well, who cares. In the event that that seemed likely, I would prefer 45% to 55% and a way lower exemption.

      However, if the GOP has the Democrats where they want them, then thats great.