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Monday, October 09, 2000

Estate tax cuts another issue




By John Byczkowski
The Cincinnati Enquirer

        There's an issue that's been little discussed in the campaign: estate tax reform. Mr. Bush would repeal the estate tax. As with his income tax cuts, Mr. Gore favors targeted cuts.

        Repealing the estate tax would cost $400 billion over 10 years. Given current budget projections and the cost of Mr. Bush's other proposals, “there's not enough room (in the budget surplus) unless we get really good budget numbers again,” said Clint Stretch, the director of tax policy for the accounting firm Deloitte & Touche.

        “Clearly we need to fix the estate tax. Rates are unacceptably high relative to what the income tax burden is. Exemption amounts are inadequate relative to what's happened to the price of housing on the East and West coasts. The question is, how far down the road do you go to full repeal?”

        He said he believes Democrats would agree to raising the exemption to $4 million, from the current $650,000 (and scheduled to rise to $1 million in 2006). They'd also agree to cutting the estate tax rate to around 40 percent from 55 percent. “That would take care of most of the squeaky shoes in that system,” he said.

       



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