Its been reported that Dan L. Duncan, a Texas pipeline tycoon who died two months ago may become the first American billionaire allowed to pass his fortune to his children and grandchildren tax-free.
Had his life ended three months earlier, Duncan's riches - Forbes magazine estimated his worth at $9 billion, ranking him as the 74th wealthiest in the world - would have been subject to a federal tax of at least 45 percent. If he had lived past Jan. 1, 2011, the rate would be even higher, 55 percent. Instead, because Congress allowed the tax to lapse for one year and gave all estates a free pass in 2010, Duncan's four children and four grandchildren stand to collect billions that in any other year would have gone to the Treasury.The one-year lapse in the estate tax was signed into law by President George W. Bush in 2001, an accounting quirk in his package of tax cuts. Although Democrats pledged to close that gap and reinstate a tax for 2010 when they took control of Congress, they failed to reach an agreement in December.
No comments:
Post a Comment