Under the Bush tax cuts, the federal “death tax” – a levy taken in federal taxes from a person’s possessions after he or she dies – diminished over the past decade and finally fortunately disappeared in 2010.
That was only fair, because taxes had already been paid on that money at least once, when it was earned. It should not be taxed a second time before it is passed on to family or other heirs.
But unless there is prompt remedial action by Congress, the death tax will return – and will skyrocket to as high as 55 percent in 2011!
That’s unconscionable! It is not just taxation. It’s confiscation.
The up-to-55 percent death tax, which would take effect if Congress doesn’t act to prevent it, reportedly has some people considering desperate measures.