Obama-GOP tax deal would tax only 3,500 inheritances [View All]

Obama-GOP deal would tax only 3,500 inheritances
By STEPHEN OHLEMACHER
The Associated Press
December 8, 2010

WASHINGTON -- More than 40,000 estates of between $1 million and $10 million wouldn't have to pay inheritance taxes next year under the deal struck by Republicans and President Barack Obama.

The package would leave only about 3,500 of the largest estates subject to federal taxes next year, a boon for the wealthy that many House Democrats say they can't accept.

The package Obama negotiated would set the top rate at 35 percent and exempt the first $5 million of an individual's estate. Couples could exempt $10 million.

At those levels, the tax would affect just 0.14 percent of all estates in 2011, or about 3,500 estates, generating about $11.2 billion in revenue, according to an analysis by the Tax Policy Center, a Washington research group.

Under the current law, more than 44,000 estates would be taxed next year, generating $34.4 billion in taxes.

"To out of nowhere throw in something that would not have any prospect of passing, I think, either chamber, is stunning," said Rep. Earl Pomeroy, D-N.D.

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http://www.washingtonpost.com/wp-dyn/content/article/2010/12/08/AR2010120805207.html