United For A Fair Economy does not want to turn the clock back as dramatically as law in place threatens, but they think that Obama's proposal gives up too much. They are proposing $4,000,000 per couple. I don't know why they put it that way, but, apples to apples to the numbers above, that would work out to $2,000,000 and 45% (maybe more) on the excess. Yesterday I got invited to a conference call about the proposal that was held this morning. Unfortunately I couldn't make it. You know how it is - day job and all. They did send out a press release. They are doing a petition drive and they have lined up some pretty impressive signers, although some might think of them as the usual suspects
According to a growing number of prominent billionaires, millionaires, and public figures, President Obama's estate tax proposal, based on 2009 law, is not strong enough. Warren Buffett, George Soros, President Jimmy Carter, Bill Gates, Sr., and many others have signed a list of notable wealthy individuals who are calling on Congress and the President to raise more of the revenue needed in the fiscal slope negotiations through a stronger estate tax—a tax most of the signers would ultimately pay.
The impressive list of supporters was unveiled today at a national press conference featuring Robert Rubin, former Treasury Secretary and Co-Chairman of Goldman Sachs; John Bogle, founder and former CEO of The Vanguard Group; Abigail Disney, granddaughter of Roy Disney and a filmmaker and philanthropist; and Richard Rockefeller, MD, heir to Standard Oil founder John D. Rockefeller.
“I think a substantial estate tax along the lines of this proposal - $4 million per couple exemption and a graduated rate starting at 45% - serves important economic and social purposes,” said Robert Rubin. “We need substantial revenue for deficit reduction, public investment and providing economic security. A substantial estate tax can provide some of that revenue with no meaningful adverse impacts."
Bill Gates, Sr., successful attorney and father of Microsoft Founder Bill Gates III, noted, “Those of us who have signed this statement to date – including my friend Warren Buffett – believe that a $4 million exemption per couple and a 45% rate, rising on the very largest fortunes, is perfectly reasonable, and should be put into law. Particularly in the face of the devastating cuts to social programs that are being proposed, it would be shameful to leave potential revenue on the table from those most able to pay.”
While the group’s Responsible Estate Tax proposal would not fully revert to the pre-Bush tax rates, it is significantly stronger than 2009 law. "If we can keep even half of the $256 billion Obama's plan gives up in revenue, that would be a huge win," stated Lapham. "At a time of extreme inequality and hardship for Main Street America, we should be asking more from those at the top, not less. The additional revenue generated from a responsible estate tax would reduce the deficit reduction pain that would otherwise will fall on middle- and low-income households."
The group rejects claims made by opponents about the estate tax's impact on small businesses and farms. Only 40 small farms and businesses are expected to pay any estate tax in 2012 according to the Tax Policy Center, and those that would pay it will pay only 3.1% of the estate's value on average. And in most of those cases, they have enough liquid assets to easily pay the estate tax without having to touch the farm. Also, if they are cash-strapped, provisions in the law allow them to pay any tax liability over a 15-year period. Even in 2001, when there was only a $2 million per couple exemption, the Farm Bureau could not cite a single example of a farm being sold to pay the estate tax.
Richard Rockefeller spoke of the essential role of philanthropy in strengthening the fabric of society, and the role of a responsible estate tax structure in providing incentives for giving. He added, “If the world I leave behind is one of gated communities, growing inequality and misery among the have-nots, downward mobility for the middle class, a degraded environment and a rotting social and physical infrastructure - then their inheritance will be a shabby one - no matter how much money they get.”
I have to say that I am not really pleased that there is another proposal being floated. I wish they would just decide on something and stick with it. Whatever it is, well like Rhett said
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