[Congressional Record (Bound Edition), Volume 157 (2011), Part 12]
[Extensions of Remarks]
[Pages 17983-17984]
[From the U.S. Government Publishing Office, www.gpo.gov]




                    THE SENSIBLE ESTATE TAX OF 2011

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                           HON. JIM McDERMOTT

                             of washington

                    in the house of representatives

                      Thursday, November 17, 2011

  Mr. McDERMOTT. Mr. Speaker, I rise today to introduce the Sensible 
Estate Tax Act of

[[Page 17984]]

2011. This legislation offers a thoughtful comprehensive approach to 
reforming our estate tax system that is supported by voters across all 
income levels. As America comes out of one of the worst recessions in 
its history, this Congress must carefully consider all sources of 
revenue that are not only effective, but fair and equitable. This 
estate tax embodies those values.
  The past decade of failed tax policies have killed jobs and resulted 
in significant income and wealth disparity in this country. The promise 
and strength of America lies in a system that benefits everyone. These 
tax policies have steered us away from this promise and crippled the 
American economy. The middle class continues to shrink as more and more 
wealth flows to the top--and this country's current tax system makes 
this unfairness worse. The current estate tax policy is the poster 
child for the unfairness we all see.
  That is why I am introducing this legislation. This bill will bring 
the estate tax back to the rates and exemptions from before the Bush 
tax cuts--a time when this country experienced continued prosperity and 
budget surpluses.
  Specifically, the Sensible Estate Tax Act of 2011 will return the top 
marginal rate to 55 percent and lower the exemption for individuals to 
$1 million. It will also reunify the gift and estate taxes, and provide 
for permanent portability of any unused exemption. Accountants and 
taxpayers have been asking Congress for a permanent and fair estate tax 
so they may properly plan their affairs. This bill does just that. 
Additional estate tax loopholes are also addressed, including a 10-year 
minimum on grantor retained annuity trusts, limitations on the 
generation skipping transfer trust exemption, and rules for consistent 
basis reporting.
  Today's law allows for up to $10 million in wealth to be transferred 
tax-free at death. And some of my colleagues across the aisle say even 
that is not enough. In a country that cherished the ideal that where 
you are born should not determine where you end up, it is inherently 
unfair that the average middle class family pays income tax while the 
children of rich parents can inherit $10 million tax-free.
  Succeeding financially in life is a wonderful American right and the 
families of wealthy people should benefit from that good fortune. But 
no one gets wealthy on their own--financial success for any American is 
achieved by using the roads, schools, and public services that all 
Americans pay for. It is only fair that they reinvest in the country 
that provided them with so much opportunity.

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