The most insidious distributionist tax ( unless you have trusts in Guam, like the Kennedys, and legislate earmarks )

• http://tinyurl.com/crhf2l
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• MARCH 31, 2009
  

Night of the Living Death Tax

Obama's budget quietly resurrects it in 2010.

Lawrence Summers, President Obama's chief economic adviser, declared recently that "Let's be very clear: There are no, no tax increases this year. There are no, no tax increases next year." Oh yes, yes, there are. The President's budget calls for the largest increase in the death tax in U.S. history in 2010.

The announcement of this tax increase is buried in footnote 1 on page 127 of the President's budget. That note reads: "The estate tax is maintained at its 2009 parameters." This means the death tax won't fall to zero next year as scheduled under current law, but estates will be taxed instead at up to 45%, with an exemption level of $3.5 million (or $7 million for a couple). Better not plan on dying next year after all.