Death Tax, Capital Gains Tax & Others
Chances Look Good
The Forest Landowners Association-backed tax plan overwhelmingly passed its first test in Congress on Monday. The bipartisan tax package, which would keep bash-era tax cuts in place includes provisions that are highly important to FLA members. The measure that carries a 35 percent tax on estates over $5 million ($10 million per couple), maintenance of a 15 percent capital gains rate and stops lower income-tax rates from expiring at the end of the year, now heads to a final vote in the Senate on Tuesday or Wednesday, with a vote in the House of Representatives expected by the end of the week.
By a vote of 83 to 15, the measure easily cleared the 60-vote threshold needed for most legislation to advance in the 100-seat Senate. Both chambers of Congress could approve the bill by the end of the week, despite complaints from many Democrats that Obama has given away too much to the Republicans who will soon enjoy greater clout in Washington.
But, many economists say the deal could boost the sluggish economy, in part because of a payroll tax credit and extension of jobless benefits, at a time when Congress has shown little appetite for spending-based stimulus efforts. They estimate the tax package could lift economic growth next year by up to a full percentage point, perhaps pushing it above 4 percent.
To learn more about these issues, or others affecting private forest landowners, please contact Frank Stewart or call (703) 549-0347.