New Tax Break
March 10, 2011 § Leave a comment
Taxes. Love them (does anyone?) or hate them, they don’t seem to be going anywhere anytime soon. So tax breaks and new ways to take some of the tax burden off individuals is always something that catches my eye. In a recent article from the Wall Street Journal, the author discussed the new tax rules involving gift taxes; “For the next two years, the gift-tax exemption jumps to $5 million from $1 million for individuals and to $10 million from $2 million for couples…”. People receiving gifts that exceed these amounts have also been cut a break, with the tax rate dropping from 55% to 35%. In recent years, the estate tax exemption amount was raised to 5 million and amounts exceeding the 5 million mark received a tax rate drop to 35%. I thought it was interesting to note that the only states that impose an additional state gift tax are Tennessee and Connecticut.
Ultimately it’s nice to see tax reform occurring, even if it will only affect some taxpayers. Personally, raising the gift-tax exemption does not have an effect on me. I’d like to see more reform occur at lower-income levels instead of at the higher level helping people with millions of dollars worth in assets.