Two senators propose reinstating estate tax (Democrat Blanche Lincoln and Republican Jon Kyl)

Reuters ^ | 07/14/2010 | Kim Dixon

[SeekAndFind]

Two senators, a Democrat and a Republican, have reintroduced a proposal to reinstate the estate tax, which lapsed this year amid a row among lawmakers over taxing the wealthy when they die.

Democratic Senator Blanche Lincoln and Republican Senator Jon Kyl late on Tuesday reintroduced a plan to tax estates over $5 million at a rate of 35 percent. The estate tax that expired last year had taxed estates at a rate of 45 percent, above an exemption of $3.5 million for individuals and above $7 million for couples.

There is no estate tax in 2010 because lawmakers last year failed to reach a deal to extend the tax. The House of Representatives last year had passed an extension of the 2009 rates, but senators clashed over the level of the tax.

Without action, under current law the tax will rise to 55 percent

[NonValueAdded]

Fear not, Kyl is pushing for a 36% tax DECREASE in 2011. He’s steering a course between a rock and a hard place. If the RATs do nothing, the rate goes up to 55% and he has to sell them on dropping it down to 35%.

[pulaskibush]

Arkansas Ping!

Senator Kyle needs to demand an elimination of the estate tax and have nothing to do with Blank Lincoln.

[pulaskibush]

Arkansas Ping!

Senator Kyle needs to demand an elimination of the estate tax and have nothing to do with Blank Lincoln.

[CharlesWayneCT]

This is one of the worst articles I’ve ever seen from a real news source. It gets almost NOTHING right, and tells exactly the opposite story from the truth.

Under current law, the tax went to zero in 2010, and then in 2011 goes back to it’s original value, which is 55% on just about everything (over I think $600,000, or maybe a million, I’d have to look).

Last year the house tried to pass a bill that would actually re-instate the tax in 2010, but permanently set it to something in between 0 and what it is going to be starting in 2011. That effort failed because there was no liberal-left payoff for Obama in getting it passed.

Now, there are some who are trying to fix the problem that in 2011, it goes back to the pre-2001 law. This particular effort is a 35% tax on values over 5 million. My guess is the liberals won’t accept this, I think they want to tax more (maybe 3.5 million, or maybe less than that).

[CharlesWayneCT]

Whywould they consider that? They are like petulant children, who assume that whatever they want can magically happen if a republican in congress would just wish it hard enough.

I say they are too small-minded. If you are going to wish for something that can never happen, why not just hold your breath and wish for the republicans to impeach Obama?

[FreeStateYank]

There should be an exception for politicians who fattened their wallet at the public’s expense: 90% of everything. Just think, the Kennedy legacy would have been cut off at the knees years ago.

[streetpreacher]

Maybe that’s what needs to happen. Huge tax increases and a prolonged recession. Voting Socialist should have consequences. A nice beating to the head will be an objective lesson for the next 30 years.

[09Patriot]

well blache may not be around much longer, lets hope the same for kyl

[09Patriot]

so just because he doesnt go full out socialist its fine and dandy you are probably content with the repugnicans plans to “repeal and replace” health care, I perfer repeal. people like you like government only if its republicans raping you.

[Busywhiskers]

A few points in response to your post.

1. Spelling, punctuation, and capitalization are our friend.
2. You don’t know me so you have no idea what people like me think of government.
3. I support repeal. I may support replace depending on the degree to which it ends the present level of government meddling in the health care industry.
4. If you want repeal any time soon you had better start supporting Republicans because a repeal bill is going to need a large enough majority in the house and Senate to override Obama’s veto and the R’s are the only party with a shot at getting that majority. I know it is a bitter pill to swallow. I don’t like it either, but that is the reality of the American political system.