Posted by: Heinz Brisske
President Obama’s proposed budget revises two “permanent” estate tax breaks signed into law in 2013 by restoring them to 2009 levels. First, the inflation-indexed estate tax exemption of $5 million is reduced to $3.5 million. Second, the top 40% estate tax rate is increased to 45%.
The White House budget proposals also include a number of income tax provisions. The chances of any of these proposed tax changes passing through Congress unscathed are reported to be virtually nonexistent. In addition, Obama’s plan has to compete with legislation drafted by House Ways & Means Committee chairman Dave Camp (Rep.-MI). Nevertheless, it appears that both sides of the aisle seem willing to consider significant tax reform in the coming year.
We’ll believe it when we see it. Stay tuned.