Rich should pay high taxes, but not property taxes


Perelman’s point of view obtains some sympathy in Washington. While income taxes have increased as part of the “tax cliff” agreement for high earners, inheritance tax has been set at a more generous level. The tax was to increase to 55 percent on estates over $ 1 million. Instead, the tax was set at 40 percent for individual estates valued at $ 5.25 million.

(Read more: Business climate good for incomes, not for jobs: Perelman)

It seems unlikely that the inheritance tax will be abolished or increased anytime soon. Obama proposed in his budget to increase the tax to 45% and reduce the exemption to $ 3.50 million from $ 5.25 million.

But experts say a further increase in inheritance tax is unlikely. So, however, is a reduction or elimination of the tax. A recent study in American Politics Research found that wealthier members of Congress were more likely to vote to repeal the inheritance tax.

Obama’s proposal, however, means that the so-called permanent fix for inheritance tax may not seem so permanent.

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