Burr Alert: An Update on Mrs. Clinton's Estate Tax Proposals

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Since we published our Burr Alert summarizing each presidential candidate's estate tax proposals earlier this month (FAMILY-CONTROLLED BUSINESSES -- TAX TARGETS AGAIN: Newly Proposed 2704 Regulations and Presidential Candidates' Positions ("Tax Targets Again")), Mrs. Clinton has expanded and updated her tax platform adding a number of provisions that could prove even more devastating to family businesses than her original proposals. For example, Mrs. Clinton's newest tax platform suggests that the top estate tax rate should be increased to 65%, or nearly two-thirds (2/3) of an estate's value. As outlined in Tax Targets Again, Mrs. Clinton's original platform called for trimming back the estate tax exemption amount by nearly $2 million per person ($4 million per couple), which would take the estate tax exemption from the current amount of $5.45 million per individual to 2009 levels which were $3.5 million per person. Further, her original platform only advocated increasing the estate tax rate by 5%, from a flat 40% to a flat 45%.

With the Presidential race appearing to tighten as we move from September into October, Mrs. Clinton has revised her position on estate taxes in a manner many political pundits believe is an effort to attract more of Mr. Sanders' supporters. In addition her original proposals, Mrs. Clinton is now championing the addition of three (3) more estate tax rates, re-imposing a graduated rate schedule starting at 45%. For estates with over a $10 million value, Mrs. Clinton is suggesting a 50% tax rate. When the value of the estate reaches $50 million, she would apply a 55% tax rate. And for those estates in excess of $500 million, a 65% tax rate has been floated. When combined with her initial proposals and the proposed IRS regulations detailed in Tax Targets Again, the estate tax would again become a very real obstacle to the ability of American families to keep businesses, farms, ranches, timber and other large holdings "in the family."

Download the full article, "An Update on Mrs. Clinton's Estate Tax Proposals."

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