May 16, 2010

Congress Reportedly Considering a Roth-Style Estate Tax

Here's an odd news flash: On The Money, a blog of the congressional newspaper The Hill, this week said lawmakers are considering whether to let taxpayers have the option of paying estate taxes in advance so they don't owe that money when they die.

The idea is to let people pay a lower tax rate (reportedly 35%) if they prepay the estate tax they think will be due upon their deaths. This would get more tax money into the government sooner, and in return it would be a terrific deal for those wealthy enough to have to worry about the tax--which is due to return to 55% next year.

Stay tuned to see what becomes of this idea.