Effect of a Prepaid Estate Tax

As I previously blogged, the concept of a prepaid estate tax is still under consideration, but is not the main focus of the most recent talks.  The effect of a prepaid estate tax is to create much-needed revenue for the government now, but a big decrease in collections in the distant future.  This could circumvent Congress’s pay-as-you go rules.

See Robert Frank, Proposed Estate Tax:  Pay Now, Die Later, WSJ, May 21, 2010. 

Special thanks to Jim Hillhouse (Wealth Counsel) for bringing this to my attention.