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Reform, Not Repeal July 17, 2000 (Principal Financial Group) With passage of House and Senate legislation to phase out the estate tax over the next ten years, you and your clients may be wondering what all these changes mean for estate planning. Reform, Not Complete Repeal
Most industry experts agree that reform, not repeal, is a more appropriate course of action. Some of the concerns with complete repeal are:
The Media Machine
The media focus on "eliminating the death tax" appears to be one-sided. The other side of the issue needs more attention - the tax only applies to approximately two percent of all taxpayers. An example cited by an industry expert states that if the repeal is fully phased in, a $75 billion tax benefit will be created for the top three people at Microsoft. Yet a very small percentage of small business owners and farmers are impacted by estate taxes. Get the Message Out
It looks as though the discussions and legislation surrounding estate taxes will continue through this fall. The media will likely continue to report on this. As a result, prospects may hesitate taking action now, or existing clients may want to surrender or delay existing contracts. To address these concerns, remember to place emphasis on these facts:
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