Wednesday, February 27, 2008

Death and Taxes

I haven't heard much about taxes lately from either John McCain or from the Democratic candidates. I suspect that, whomever is elected, taxes are headed in the same direction - upward. Why do I say that, given McCain's promise not to sign a tax increase? Because when various of the Bush tax cuts expire in 2010, taxes immediately revert to a higher level. The leading difference I expect is that with a Democratic President, Congress will pass legislation before the reversion.

McCain, on the other hand, having promised not to "raise taxes" may stonewall a new tax bill until after the taxes expire, then immediately sign a bill largely the same as what the Democrats would pass in advance, but pitching it as a tax cut and as "absolutely necessary to shield you from much higher taxes."

Sorry, wealthy folks... At this time I just can't see the estate tax repeal being made permanent, although I do expect an exemption much higher than that which existed eight years ago.

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