SaveWealth Notes Impact Hurricane Katrina May Have on Estate Tax Repeal

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Ever since the passage of estate tax reform in 2001, lawmakers and wealthy individuals have been pushing to abolish the estate tax. Momentum for permanent repeal was building, but Hurricane Katrina's devastation, along with the ongoing costs for wars in Iraq and Afghanistan, may have quashed the issue for the time being.

SaveWealth introduced a news story today on the impact Hurricane Katrina may have on permanent repeal of the estate tax.

With passage of the Economic Growth and Tax Relief Reconciliation Act of 2001, gradual elimination of the estate tax is scheduled to take place in 2010. However, the sunset provision of the law may allow estate taxes to come back with a vengeance. Starting in 2011, individuals with estates over $1 million may be forced to pay estate taxes, with some rates climbing upwards of 50%.

Legislation has been introduced in the House to repeal the estate tax permanently, with critics of the tax gaining momentum during summer recess. Senators returning from summer break were supposed to consider the legislation, but instead were forced to contend with the unprecendented devastation Hurricane Katrina brought to the South.

With damage estimates of well over $100 billion, mushrooming federal deficits, as well as a full legislative calendar, estate tax repeal may not happen this year if it happens at all.

To access SaveWealth's coverage on this issue, please visit: http://www.savewealth.com/news/2005/09/estatetax/

About SaveWealth

SaveWealth.com is dedicated to serving its visitors in the areas of taxes, retirement, and estate planning. Through its partnerships and education, SaveWealth.com has helped families across the nation save wealth and time through the use of advanced financial strategies. The site hosts thousands of web visitors daily, with timely news, tax tips, free special reports, and useful money and lifestyle information.

SaveWealth is a registered trademark, and SaveWealth.com and SaveWealth Financial are trademarks of SaveWealth.

NOTE TO EDITORS: For further press information, please visit the SaveWealth Media Center at http://www.savewealth.com/pr.

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Scott Carr