George W. Bush, former president, had his estate tax expire at the end of 2009. Rich individuals were being encouraged by Senate to postpone death until New Year’s Day, 2010. The 45 percent estate tax, or death tax, wouldn’t have to be paid by their families if they could do this. .
There could be less exemptions with an estate tax at 55 percent
55 percent is what the top estate tax rate will rise too while exemptions that used to be $ 3.5 million per individual will fall to $ 1 million, as outlined by the Wall Street Journal. That means there will be eight times more tax payers paying estate tax now, even if that means they are borrowing money. Here is an example from the Journal on how the new estate tax affects a $ 5 million estate. The added estate tax for somebody who dies on January 1, 2011, would be over $ 2 million. For a $ 15 million estate, the new cost would be approximately $ 8 million. ”I want my cash now” is being said by all the heirs.”
Called ‘The largest increase in a major tax that we’ve ever seen’
Rich people losing money is the least of America’s concerns. But this sudden turn of the taxation screw is dramatic. As this is a huge payday for the government also as the International Revenue Service, Joseph Thorndike of Tax Analysts says, “a jump from zero to 55 percent would be the largest increase in a major tax that we’ve ever seen”. Elderly estate-holders and their heirs have come to ponder the rather perverse death incentive the looming estate tax provides. Since you will find elections in the fall, Congress won’t be taking any action yet. Questions like whether retroactive extension to the current zero-level estate tax could be approved are on the minds of estate holders.
Doctors don’t recommend estate tax suicide
A human life is worth more than all the riches in the world. This is something any doctor will tell you – it ties into their Hippocratic Oath – but not all patients are listening, including those sweating out the estate tax problem. Sometimes they’ll go to other countries where you will find aid-in-dying laws to help them. Switzerland is the only place where doctors are allowed to extend the service of assisted suicide to those from one more country although the Netherlands also allows assisted suicide, as outlined by the Wall Street Journal.
Citations
Wall Street Journal
online.wsj.com/article/SB10001424052748703609004575355572928371574.html
Oh yeah? Well, Bill Gates’ dad likes it!
youtube.com/watch?v=ZQ_jxLKbbDo
