From Socialist Worker: http://socialistworker.org/2013/01/14/stealing-from-seniors
Gary Lapon
January 14, 2013
CALL IT Robin Hood in reverse: The super-rich comes out of the so-called “fiscal cliff” debate with most, if not all, its tax breaks from the Bush years intact–before Washington gets down to the project of cutting benefits for the elderly and most vulnerable by “reforming” Social Security, Medicare and Medicaid.
Translation: Take from the poor to give to the rich.
Much of the focus in the fiscal cliff deal that passed Congress focused on the income tax increase for the richest Americans–those making $400,000 or more ($450,000 for couples filing jointly). Less noticed was the giveaway to the rich, worth nearly $400 billion over 10 years, by reversing what would have been a significant increase in the estate tax.
Without action by Congress, the estate tax was set to increase substantially as of January 1, back to the levels of the Clinton years. The exemption–that is, the amount that can be passed to heirs at death, or as gifts during one’s life, without paying the estate tax–would have fallen from $5.12 million per person ($10.24 million for couples) to $1 million ($2 million for couples). The tax rate on the portion of estates exceeding the exemption would have risen from 35 percent to 55 percent.
Instead, the exemption will stay where it is–and even grow with inflation. And the new tax rate amounts over the threshold will be just 40 percent. And unlike the Bush tax breaks, this massive cut in the estate tax from Clinton-era levels is permanent, with no expiration date.
Continue reading at: http://socialistworker.org/2013/01/14/stealing-from-seniors
