Estate Tax Proposal From the Wealthy

Some want to repeal the estate tax, but a group of wealthy individuals proposed setting the estate tax at $2 million per person, with a 45% teaser rate that would “rise on the largest fortunes.” Backers of this proposal include Warren Buffett, Jimmy Carter, George Soros, Bill Gates Sr., John C. Bogle, and Robert Rubin.  Mike Lapham, director of Responsible Wealth, believes that a substantial estate tax can help to raise revenue.  

If Congress does nothing by year’s end, the exemption level reverts to $1 million per person and the top rate will be 55%.  President Obama’s proposal is a $3.5 million per person exemption with a flat 45% tax rate.  Lapham notes that the $2 million/45% tax rate strikes a balance between these two solutions.  

See Ashlea Ebeling, Buffett, Carter, Gates Sr. and Friends Call For Estate Tax With 45% Teaser Rate Amid Fiscal Cliff Negotiations, Forbes, Dec. 11, 2012.  

Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this article to my attention.