Back in 2001 Congress passed a law to make estate taxes vanish by 2010 and then come roaring back in 2011. Faced with a loss of revenues in 2010 (Congress hates that) and the return of high estate taxes in 2011 (widows & orphans hate that), it was a story without a happy ending for anyone. Last week the US House of Representatives passed a bill that will "permanently" extend the estate tax at a top rate of 45% but with an important exemption: individual estates up to $3,500,000 ($7,000,000 for couples) are free from federal estate tax under this bill. The Senate has not yet passed their version but some action is likely there. If signed into law the bill will mean that 99% of Americans will see their estates passed to their heirs tax-free. Good news for nearly everyone.
This morning the dollar is higher; gold and oil weaker; stocks headed for a soft opening. Not a trend that is likely to continue.
(This article contains the current opinions of the author but not necessarily those of Brighton Securities Corp. The author's opinions are subject to change without notice. This blog post is for informational purposes only. Forecasts, estimates, and certain information contained herein should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. References to specific securities and their issuers are for illustrative purposes only and are not intended and should not be interpreted as recommendations to purchase or sell such securities).