Bills Introduced Would Repeal Federal Estate Tax

[ChiTownVenture]

On January 5, 2011, Rep. Michele Bachmann [R-MN-6] introduced H.R. 86, End Tax Uncertainty Act of 2011. Section 3 of the H.R. 86 would permanently repeal the federal estate, gift, and generation-skipping transfer taxes by repealing Subtitle B (Estate and Gift Taxes) of the Internal Revenue Code. The repeal would be effective January 1, 2011. H.R. 86 would also repeal the alternative minimum tax on individuals and reduce the maximum corporate income tax rate to 25%

On January 5, 2011, Rep. David Dreier [R-CA-26] introduced H.R. 99, Fair and Simple Tax Act of 2011. Section 3 of H.R. 99 would permanently repeal the federal estate, gift, and generation-skipping transfer taxes by repealing Subtitle B (Estate and Gift Taxes) of the Internal Revenue Code. The repeal would be effective January 1, 2011. H.R. 99 would also cut taxes by providing an alternative determination of individual income tax liability, reducing the tax rate on corporate income and capital gains, and creating tax-free retirement savings accounts.

The FAST Act would vastly simplify the preparation process by incorporating an optional, single page Fair and Simple Tax Form that cuts the current that tax bracket in half and establishes three new tax brackets – 10 % on the first $40,000 in income, 15% on incomes between $40,000 and $150,000 and 30% on any income above $150,000. The Fair and Simple Tax form also preserves all of the major deductions, including mortgage interest, charitable contributions, state and local taxes, the child tax credit and the personal exemption.

blogs.forbes.com/hanisarji/2011/01/12/two-bills-introduced-in-112th-congress-would-repeal-federal-estate-tax-h-r-86-h-r-99/

It is possible that a tax system overhaul might actually happen?

[Deleted]

i would not hold my breath.

[dancinmama]

Ya, I wouldn't hold my breath either; but something should be done about the estate tax and the AMT for sure.

[ChiTownVenture]

I wouldn't hold my breath either

I'm not so sure that it's so unlikely, this has been an ongoing issue for many years. People are not happy with the current tax system, there are a lot of issues that need to be addressed.

I would contend that now is the time to do it.

[dancinmama]

Jan 13, 2011 9:04:55 GMT -5 ChiTownVenture said:

I wouldn't hold my breath either

I'm not so sure that it's so unlikely, this has been an ongoing issue for many years. People are not happy with the current tax system, there are a lot of issues that need to be addressed.

I would contend that now is the time to do it.

I agree that if there was ever a time to go for it, it is now; I just don't know if the politicians have enough balls to go forward. There are so many lobbyists and special interest groups that would be more than just a little bit hesitant to give up various deductions.

I would love to see a tax system that would allow us to dissolve the IRS, thereby deleting a federal budget line item at the same time!!

[Deleted]

Jan 13, 2011 9:04:55 GMT -5 ChiTownVenture said:

I wouldn't hold my breath either

I'm not so sure that it's so unlikely, this has been an ongoing issue for many years. People are not happy with the current tax system, there are a lot of issues that need to be addressed.

I would contend that now is the time to do it.

From what the political pundits are saying (I know, I know, you can stop lauging)...

A lot of bills like this are going to be started in the House and then die in the Senate. A big game of political ping pong.

[ChiTownVenture]

A lot of bills like this are going to be started in the House and then die in the Senate

Agreed, especially since both of these bills back date to the beginning of 2011. But I do believe that this pushes the argument that something needs to be done, and hopefully someone decides to propose a bill that could actually get passed and would help overhaul the failing tax system.

[deziloooooo]

There are a lot of taxes that should be repealed, loop holes closed too but isn't the problem the deficit and until we tackle cuts in all areas...as suggested by the bi partison committee , why first on tax cuts. Don't we need the revenue.
If they tackle the reductions first..leave the tax cuts alone..even as we eventually get to them..the $ coming in will help on revenue..then go after revamping the tax codes. Seems they are puting the carriage before the horse..I know the horse could push the carrage but not as efficient.
Just a thought.

[ChiTownVenture]

Jan 13, 2011 9:58:23 GMT -5 deziloooooo said:

There are a lot of taxes that should be repealed, loop holes closed too but isn't the problem the deficit and until we tackle cuts in all areas...as suggested by the bi partison committee , why first on tax cuts. Don't we need the revenue.
If they tackle the reductions first..leave the tax cuts alone..even as we eventually get to them..the $ coming in will help on revenue..then go after revamping the tax codes. Seems they are puting the carriage before the horse..I know the horse could push the carrage but not as efficient.
Just a thought.

Because we have a faltering economy with tax hikes on the horizon. We also have a middle class that is going to struggle under a tax penalty that was meant for the rich. A few of these items need to be dealt with now.

Budget reduction is needed but there is no reason that tax reform cannot happen simultaneously. In fact it can be argued that it should because they are directly affected and intertwined.

[rockon]

Agree with Dezilo. Our tax system is both unfair and needs major correction. I personally fair flat tax instead of progressive rates but we need to focus on spending cuts first so we have a stable revenue stream until the government size and the national debt is reduced. I think this thought has support from many affiliated with the Tea Party so hopefully that will help push this agenda forward.

[floridayankee]

Jan 13, 2011 9:58:23 GMT -5 deziloooooo said:

There are a lot of taxes that should be repealed, loop holes closed too but isn't the problem the deficit and until we tackle cuts in all areas...as suggested by the bi partison committee , why first on tax cuts. Don't we need the revenue.
If they tackle the reductions first..leave the tax cuts alone..even as we eventually get to them..the $ coming in will help on revenue..then go after revamping the tax codes. Seems they are puting the carriage before the horse..I know the horse could push the carrage but not as efficient.
Just a thought.

The tax overhaul being discussed is vastly different than tax cut issues.

[Loopdilou]

There was conjecture during obama's lame duck tax cut for all that he was positioning himself to push for an overhaul... I hope so! More equal rates plus no exemptions/loopholes would be just fine in my book.

[deziloooooo]

Jan 13, 2011 10:07:56 GMT -5 rockon said:

Agree with Dezilo. Our tax system is both unfair and needs major correction. I personally fair flat tax instead of progressive rates but we need to focus on spending cuts first so we have a stable revenue stream until the government size and the national debt is reduced. I think this thought has support from many affiliated with the Tea Party so hopefully that will help push this agenda forward.

I am agreeing with a Tea Party idea? Wow..and I am still breathing?
Double wow...possible there is new beginning going on here.

[floridayankee]

Jan 13, 2011 10:20:21 GMT -5 deziloooooo said:

I am agreeing with a Tea Party idea? Wow..and I am still breathing?
Double wow...possible there is new beginning going on here.

Welcome to the "right" dezi....

But, just like health care issues, most agreed something needed to be done. The problem was that the left and right couldn't even agree on what that something was...never mind develop a workable solution.

[zipity]

I wouldn't mind seeing the AMT go away but given the amount of revenue tied to it I would bet it's more likely to see the AMT stay and the original income tax removed. I don't think the estate tax should go away but it would be nice to see the capital gains tax reduced. However, IMO any bill looking to reduce tax revenue should also specify specific cuts offsetting spending. The economy is beginning to rebound, better to let it pick up speed than to burden it with a lot of new debt.