All articles tagged with #estate tax
The article discusses the top five tax changes in Trump's 'big beautiful bill' that benefit the wealthy, including extended tax cuts from 2017, increased SALT deduction limits, expanded small business stock benefits, a permanent estate tax with higher exemptions, and modifications to itemized deductions and charitable giving incentives.
Death can trigger estate and inheritance taxes, which are not the same. The federal government has an estate tax, while some states have both estate and inheritance taxes. Thresholds for these taxes are high, but they may change in the future. Inheritance tax rates vary by state and depend on the relationship with the deceased. Ways to avoid these taxes include gifting assets before death, moving to a state without these taxes, and setting up an irrevocable trust. If unable to avoid the inheritance tax, consider buying life insurance to cover the tax bill.
House Republicans reintroduced the Death Tax Repeal Act to permanently repeal the federal estate tax, arguing that it penalizes families who have built successful farms, ranches, or small businesses. However, bipartisan support for repealing the tax is lacking, and experts believe it's unlikely to pass in the current split Congress. While the federal estate tax exemption has risen to $13.61 million per individual or $27.22 million for spouses in 2024, these limits are set to decrease after 2025. Additionally, only a small percentage of Americans are impacted by the estate tax, with most not being affected by the levy.
This opinion piece argues that the current estate tax law is advantageous for billionaires, as it allows them to pass on their wealth to future generations without significant taxation. The author criticizes this policy, highlighting the widening wealth inequality and calling for a reevaluation of the estate tax system as part of a broader economic policy.