12. Two different things: he was talking about income taxes.
The $1 million Schumer proposed related to the income tax. He proposed retaining current rates except for people with annual incomes over $1 million yearly (and letting those people's rates rise to Clinton levels.)
The other $1 million has to do with how much someone can leave at death without incurring an estate tax. Last year it was $3.5 million. This year the estate tax expired completely. Next year, unless the law is changed, the exemption reverts back to $1 million. Anything above that would be taxed at a rate of 45-55%.
15. Technically, the estate tax expired at the beginning of the year. HOWEVER,
there is almost no chance that it will actually be left that way.
At least one of the income tax bills that they just failed to pass contained an unrelated provision related to the estate tax. This provided that the exemption will return to that of two years ago -- $3.5 million -- and would be retroactive to January 2010. Most people think that this will end up being in the final bill, because both Dems and Rethugs basically agree on that.
23. Unless the estate tax is "extended" past 12/31/10, the tax on estates is reinstated.
I'm sure elderly Americans with assets have already consulted their attorneys to "update" their Wills to include an Ad Terrorum" clause that prevents distribution of his/her estate to heirs/beneficiaries if the Testator/Testatrix dies under "mysterious" circumstances.
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