Thursday, December 27, 2012

The Taxman Cometh

All this talk of the fiscal cliff is enough to drive you crazy. While the idiots in DC that can't balance their checkbook continue playing the blame game, it seems falling off the cliff may be a good thing for states in financial crisis.
In an example of federal and state tax law interaction that gets little notice on Capitol Hill, 30 states next year could collect $3 billion more in estate taxes if Congress and President Barack Obama do not act soon, estimated the Urban-Brookings Tax Policy Center, a Washington think tank.

The reason? The federal estate tax would return with a vengeance and so would a federal credit system that shares a portion of it with the 30 states. They had been getting their cut of this tax revenue stream until the early 2000s. That was when the credit system for payment of state estate tax went away due to tax cuts enacted under former President George W. Bush.
Not only is DC ready to rob from the rich, but so are several states.
Merry Christmas.
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