Estate Planning News

Dems Obstruction Of Death Tax Repeal Harmful 

Coleman says repeal legislation deserves a vote 
 
June 8th, 2006 - Washington, D.C. - Senator Norm Coleman today expressed his disappointment with the U.S. Senate’s failure to move forward with legislation to repeal the death tax. Coleman voted in favor of a measure to proceed to debate which failed by a vote of 57-41. The House voted in April 2005 to repeal the death tax by a vote of 272-162, the largest margin ever on repeal legislation. Under current law, the death tax will be phased out by 2010. However, due to arcane Senate budget rules the death tax will return with a top rate of 55% in 2011.

“We had an opportunity to do away with, once and for all, this economically damaging and unfair tax, but regrettably, the Senate was unable to take action supported by over two-thirds of the American people,” said Coleman. “This is a tax that harms our economy by penalizing the success of hardworking Americans – most especially those who serve as the main engine of our economy -- small business owners.”

“Obstruction doesn’t sit well with the thousands of small businesses and entrepreneurs and other hardworking Americans who need lasting relief through the repeal of the death tax,” Coleman added. “Instead of choosing to reward the savings, investment, and hard work of American families, the Senate has decided to allow for this tax to come back from the dead after 2010.”

According to a Heritage Foundation analysis, the death tax results in 170,000 to 250,000 fewer jobs being created each year. The death tax also harms small businesses and other hardworking families as they are forced to undertake costly and time-consuming estate-planning strategies.

“In a time of increased global competition, we can ill-afford to have in place a tax that makes it even harder for us to compete by discouraging savings, investments and job creation,” Coleman said. “During my time in the Senate I have been a strong proponent of small business financing and entrepreneurial programs and have supported pro-growth tax policies such as increased expensing and lower marginal rates to encourage greater small business creation and expansion. So I must wonder why we would continue to have in place a tax policy that in effect destroys small businesses and jobs?”

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	Did You Know?
	A "Family Limited Partnership" can be used to own and manage your property In a similar manner to a Trust, but allowing additional tax planning techniques to be employed. Family Limited Partnerships are typically used for those who have large estates and thus have a need for specialized estate planning in order to minimize federal and state estate/death/inheritance taxes as well as provide elements of asset protection.