26th Apr 2013
The Obama “Green Book” Budget for 2014 proposes the estate tax revert back to 2009 rates.
On page 138, the Administration states: “Beginning in 2018, the proposal would make permanent the estate, GST, and gift tax parameters as they applied during 2009. The top tax rate would be 45 percent and the exclusion amount would be $3.5 million for estate and GST taxes, and $1 million for gift taxes. There would be no indexing for inflation.”
This would be a radical departure from the law the President signed on January 1, 2013 (four months ago), which set the top tax rate at 30 percent and the exclusion amount at $5.25 million for estates, and the same for lifetime gifting in 2013; both indexed for inflation.