The Estate Tax is a federal tax on your estate (all your property, life insurance proceeds, annuities, trusts, etc.) after your death and if it were permanently repealed between 2006 to 2016 it is estimated to cost $369 billion (by the Joint Committee on Taxation) to $1 trillion (Center on Budget and Policy Priorities), but I don’t think that matters. Right now the amount exempt from the tax, $2 million in 2006, means only 0.5% of all estates are affected; by 2009 ($3.5 million exempt) it will only affect 0.3%. I don’t think that matters one bit.
When I get my paycheck, a huge chunk is taken out by the Federal government for taxes, another chunk by the state, and then medicare dings me followed by social security. When I buy stocks and then sell it, government takes away some of that in capital gains. Even when I earn a little bit of interest from my Emigrant Direct account, they take a piece of it there to. Now they’re going to say that when I die, the federal government is going to take away yet another piece? Picture that wizened picture of Uncle Sam going to funerals across the country, reaching into the casket, and making out with some wallets.
Think I’m off my rocker?
If you’re curious, CNN Money had a little piece about all the proposals .