As I sit watching TV during the countdown to a New Year, there is a lot of press coverage of the looming "fiscal cliff". I recall some insight from some colleagues in the tax attorney sphere, They apparently have consulted with the Congressional Budget Office (CBO) as well as both parties.
Apparently, the largest transfer of wealth in the history of The United States is due to take place during the next six years. The first wave of baby boomers will pass weealth to their children in the form of estate (inheritence) revenue and consequently, estate taxes. Apparently, the CBO estimates that 7 TRILLION dollars in estate tax revenue will be generated from this transfer of wealth. This is a huge dent in the debt crisis but if we continue to spemnd a trillion dollars more than we take in every year, it will not matter.
Seven trillion dollars is an astronomical sum of money but I cannot help but think that the wealthy will shelter a significant amount of the momey that is slated to be transferred,
In any event, this explains why estate taxes are being discussed during the "fiscal cliff" negotiations. Estate taxes are a vital way out of our current mess, but by itself, estate taxes cannot cure an insatiable appetite to spend money by the government. take in more, spend more is the rule of the day and in my opnion, it is a runaway freight train to disaster.
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