As part of the tax deal struck at the end of 2010, Congress set the death tax at 35 percent with a $5 million exemption for 2011 and 2012. The death tax did not apply in 2010 because the 2001 and 2003 tax relief abolished the harmful tax. Even though the death tax is resurrected, the new rate and exemption levels represent a substantial improvement from where the death tax was in 2000 before the tax cuts: 60 percent with just a $1 million exemption. Despite the positive advances the death tax is back in place and therefore has resumed destroying jobs and slowing the economy. The new Congress should put an end to the death tax once and for all.
The Heritage Foundation produced a series of videos that highlighted the burden that would be imposed if the Death Tax would be reinstated on January 1, 2011 Read More.
2010 is the only year since 1916 in which heirs to an estate will not have to pay the dreaded death tax. Victory for small businesses? Not yet—due to a legal quirk, the death tax is scheduled to come back to life in 2011. Read More.
The death tax: What does it kill? Who does it affect? It affects hundreds of thousands of small-business owners across the country Read More.
The House and Senate may soon begin debate on what to do with the federal estate tax. If Congress fails to act before January 1, 2010, current law calls for death taxes to disappear entirely for one year before returning in 2011 at a top rate of 55 percent and a $1 million exemption of taxable estate. Read More.
Here are some of our latest blog posts on the Death Tax and what it means for small businesses. Read More.
The nation faces an unprecedented tidal wave of tax hikes on January 1, 2013. Aptly called “Taxmageddon,” at nearly $500 billion the tax hike is so massive that it has accomplished what many regarded as impossible: consensus.[1] There is broad agreement that at least most of this tax…
Abstract: The current tax code is an enormous burden on the economy, preventing it from reaching its full potential. Tax reform is long overdue. After initial reluctance, President Obama now agrees that the economy needs tax reform. He…
Abstract: The President’s 2013 budget, released on February 13, repeats the stale and unsuccessful policies of the past three years. The Administration’s apparent vision is one of bigger government, more spending, higher taxes, and deeper deficits. At a time when runaway spending and swelling…
Abstract: The 2010 Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act—which extended the 2001 and 2003 tax cuts for two years—also extended the lifespan of other policies that will not benefit the economy. The country is in dire need of tax reform, yet…
Abstract: President Obama recently unveiled his 2012 budget proposal and the 43 tax hikes it contains. The multitude of—utterly unnecessary—tax hikes will burden Americans to the tune of $1.5 trillion over the next decade. The President is proposing to raise federal tax revenues…
The 2001 and 2003 tax relief packages are set to expire at the end of this year. If these packages are allowed to expire, on January 1, 2011, taxes will go up automatically for American taxpayers—without a single piece of legislation ever crossing the President’s desk. President…
Abstract: The Economic Freedom Act, proposed by Representative Jim Jordan, would terminate the ineffective Troubled Assets Relief Program (TARP), and substitute a proven way to stimulate the economy: tax relief—from permanent repeal of the capital gains and death taxes to significant reductions in payroll…
In many respects, Dan L. Duncan was the embodiment of the American dream, the self-made man incarnate. He transformed $10,000 and two propane trucks into a natural gas empire and a personal net worth of $9 billion—making him the richest person in Houston, and the 74th wealthiest individual in the…
THE ISSUE: Taxes should raise the revenue to fund necessary government operations in ways that cause the least possible economic damage. Accordingly, Congress and President Obama should reform the existing tax code and drop their current plans to increase taxes…
Abstract: The death tax: What does it kill? Who does it affect? It affects hundreds of thousands of small-business owners across the country—as well as their employees and community residents who benefit from the senior and day care centers, playgrounds, charities, and learning centers…
Until recently, estate taxes (also known as death taxes) were the almost exclusive headache of the super rich, their tax attorneys, and their estate planners. But a strong economy, an ever-widening distribution of wealth--both good things--coupled with tax policy that has failed to keep up with economic growth have extended the reach of…
Abstract: 2010 is the only year since 1916 in which heirs to an estate will not have to pay the dreaded death tax. Victory for small businesses? Not yet—due to a legal quirk, the death tax is scheduled…
Table and Charts: Table 1: Current Federal Rate Table for Unified Estate and Gift Taxes Table 2: Economic Effects Resulting from Repealing the Estate Tax Chart 1: Federal Estate & Gift Tax Revenues: 1917-1995 Chart…
William Beach Director of the Center for Data Analysis The Heritage Foundation before the…
Americans are facing an unprecedented $494 billion tax hike on Jan. 1, 2013. It’s been dubbed “Taxmageddon” given the...…
Brace yourself. In a mere 271 days, you and your fellow Americans will be hit with a tax hike the likes of which this...…
The fate of small, family-owned businesses hangs in the balance as Congress decides whether or not to finally put the...…
Lunch With Heritage Chat with Curtis Dubay…
By now, Americans have become well acquainted with the fact that the Patient Protection and Affordable Care Act (PPACA)...…
For the second time in a week, Senate Finance Committee Chairman Max Baucus (D–MT) has called for the suspension of...…
The federal estate tax, better known as the death tax, was eliminated this year after a decade-long phase-out. Nothing...…
In many respects, Dan L. Duncan was the embodiment of the American dream, the self-made man incarnate. He transformed...…
The American people are already well aware of President Barack Obama's historic expansion of government spending: his...…
After months of inactivity, the Senate could finally address the death tax in the coming days. It is about time it...…
Director, Center for Data Analysis and Lazof Family Fellow
Senior Policy Analyst, Tax Policy
Norman B. Ture Senior Fellow in the Economics of Fiscal Policy
Assistant Director, Center for Data Analysis and Research Fellow