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.
