Group Pushes For Estate Tax Reinstatement

BOSTON, Mass. — A group is pushing for the reinstatement of the federal estate tax which the Senate failed to extended before New Year’s Day 2010.

The consequences of not having the estate tax would place a huge burden on the middle class, according to the United for a Fair Economy (UFE).

“Permanent repeal of the estate tax would increase the federal deficit by $1.3 trillion dollars over 10 years. Those taxes would likely be shifted from multi-millionaire inheritors to the middle class, at a time when middle-class families are already losing their jobs and homes,” said Brian Miller, UFE’s executive director.

“That’s outrageous,” he added.

The estate tax had been a part of the US tax system for nearly 100 years, though it has been cut five times since 2001.

Individuals had paid this tax in 2009 only on a part of their estate was worth over $3.5 million, or $7 million for a couple.

UFE noted that the majority of those who own small business and farms (less than one percent) do not pay the estate tax.

UFE is now supporting Congressional leaders to act soon to reinstate the federal tax retroactive to Jan. 1, 2010 and specifically Rep. Jim McDermott’s Sensible Estate Tax Act, HR 2023,

“[HR 2023] includes an exemption of $4 million for a married couple, with a 45 percent rate on amounts over that, and a 55 percent rate on estates worth over $10 million,” the UFE statement said.