As the President and Republican congressional leaders continue to dispute the inclusion of tax increases as part of a deficit reduction/debt limit extension package, as of July 4 it does not appear that harmful changes to estate tax policy are in the mix.
The President is seeking more than $400 billion in increased tax revenues to provide at least 1/5 of the deficit reduction targeted to accompany the debt limit extension. Among the tax increases envisioned by the administration:
- Capping the value of income tax deductions for individuals above the 28% bracket ($293 billion)
- Repealing the LIFO accounting method for federal taxes ($70 billion)
- Removing tax incentives for oil and gas companies ($30 billion)
- Treating carried interest of hedge fund managers as income ($21 billion)