President Obama in his press conference yesterday said that raising income taxes on the wealthy is a condition to his signing off of a fix to the “fiscal cliff”. For a complete report on the press conference please go to http://www.reuters.com/article/2012/11/15/us-usa-fiscal-idUSBRE8A80WV20121115
I view this stance as substantiating my view that Pres. Obama might stick to his guns and allow the tax rates to go up on January 1st and then paint the Republicans as the impediment to 98 percent of the taxpayers getting a tax cut. When they do reach a settlement the estate tax fix will occur. I believe a $5.12 million exemption adjusted for inflation, likely to $5,220,00 based on 2 percent inflation, will be agreed to. However, in the deal I believe the President and the Democrats will demand, and get, a gift tax exemption of only $1,000,000, albeit possibly adjusted for inflation.
Estate Tax News