With a tax bill tilted to benefit the wealthiest Americans poised to pass Congress this week, U.S. income inequality is poised to set new records. One key to that shift -- a change in the tax rules that lets the rich pass their wealth on to their heirs at the lowest tax rates in decades.
DailyFinance writer Jonathan Berr sees much to like in the compromise President Obama reached with congressional Republicans on taxes and unemployment compensation. And while he'd never call it perfect, as he notes, the American voters elect politicians to get stuff done, which this plan does.
A compromise on the highly contentious levy is part of the sweeping agreement between President Obama and the GOP. The tax is back for two years at a more reasonable 35% rate, with an exemption of up to $5 million for individuals and $10 million for couples.
President Barack Obama has cut a deal with Republicans to extend Bush-era tax cuts for two years and unemployment benefits for 13 months. But the plan is already drawing fire from Obama's own liberal supporters.
Casey Johnson, found dead Jan. 4 at age 30, and Ruth Lilly, who died Dec. 31 at age 94, were both heirs to huge family fortunes -- and both died right around the moment when a U.S. tax loophole took effect, with the potential to cost billions in revenue and to drive estate-planning lawyers crazy.
