Academic journal article Journal of Accountancy

Lawmakers Asked to Lower Estate, Trust Tax Rates

Academic journal article Journal of Accountancy

Lawmakers Asked to Lower Estate, Trust Tax Rates

Article excerpt

Several professional groups including the American Institute of CPAs, the American Bankers Association and the American Bar Association have written and visited members of congressional taxwriting committees and the Treasury Department urging them to reduce estate and trust tax rates.

The Tax Reform Act of 1986 and the Omnibus Budget Reconciliation Acts of 1990 and 1993 have combined to increase tax rates and compress rate brackets for estates and trusts. Before the TRA's passage, estates and trusts were taxed at the highest income tax rates applicable to individual taxpayers--those pertaining to married persons filing separate returns. Now, the 15% income tax bracket for estates and trusts ends at $1,500, as compared with $18,450 for married persons filing separate returns; the 39.6% surtax rate levied on all taxable income in excess of $7,500 for estates and trusts applies to taxable income above $125,000 for married persons filing separately.

In a letter to members of the House Ways and Means and Senate Finance Committees, Harvey Coustan, then chairman of the AICPA tax executive committee, said the highly compressed rates have a harsh effect on many trusts and estates. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.