The so-called Bush tax cuts are due to expire at the end of this year, and so far, Congress has not been able to set debate on any extensions. Nebraska Third District Congressman Adrian Smith, a Republican, says there has been talk about the estate tax.
“The most specific discussion that I’ve heard is to take, for example, the estate tax or death tax,” Smith says. “Right now, we’re looking at a compromise of a 35-percent rate and a $5-million expemption. Certainly, that’s better than what we’re looking at come January, of a 55-percent rate and a $1-million exemption.”
Smith says unless members of Congress do something after they return from the August break, everyone could be facing at higher taxes.
“What we’re looking at, if we do not extend the current tax policies, we’re looking at the largest tax increase in history, come January,” Smith says. “And that will not be good for the economy, I can guarantee you that.”
He says many of the tax cuts extend to middle class taxpayers, like the child tax exemption and tuition tax credits.
By Jerry Oster, WNAX, Yankton