LA Times Columnist Calls Out Kyl(R) and Lincoln (D) On Estate Taxes and Pandering To Super Rich

[Median Democrat]

This really should get more attention as the budget heads to reconciliation. The cable media really needs to get these folks on TV and ask why is Congress wasting so much time on a bill that only affects 0.3 percent of all estates.

http://www.latimes.com/business/la-fi-hiltzik13-2009apr13,0,3633165.column

/snip

Thanks to lobbyists and legislators looking out for the welfare of the richest Americans, the tax currently hits fewer than 3 of every 1,000 estates every year and bristles with exemptions and deferments for the rest. Its contribution to the federal treasury is about 1% of all revenue.

Yet it consumes enormous mind share in Washington. This month, a new tax-cut proposal from Sens. Jon Kyl (R-Ariz.) and Blanche Lincoln (D-Ark.) won Senate approval. The resolution would raise the exemption on taxable estates to $10 million from the current $7 million (after the death of both spouses). It also would cut the rate charged on the nonexempt portion to 35% from the current 45%.

The tax is currently set to fall to zero for 2010 and return with a $1-million exemption and a 55% rate in 2011; President Obama proposes merely making today's exemption and rates permanent.

/snip

[DCKit]

1. They're afraid we're going to pass it, then start killing the rich to get our $$$$ back. n/t