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Can the Estate Tax Solve the Fiscal Cliff?

The battle over the fiscal cliff has so far revolved around income taxes for the wealthy and entitlement reform. But there are many other ways the federal budget deficit could be trimmed that haven’t received much of the spotlight recently, and one of those is the estate tax. The estate tax has gone through many changes over the past ten years, as the tax cuts enacted early in President George W. Bush‘s first term reduced the rate Americans pay on inheritances and raised the threshold amount under which estates are exempt from the tax. The tax was briefly repealed altogether in 2010, before it was reenacted in a 2010 compromise which set the estate tax rate at 35% for estates valued at more than $5 million ($10 million for a couple), indexed to inflation. But without Congressional action, the estate tax will revert to its pre-2001 form January 1st. Under that version of the law, estates valued over $1 million were subject to an estate tax on a graduated basis from 37% to 55%, and a 5% ...

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Found more than 1 month ago on channel TIME Moneyland

Dow Hits Record, Erasing Great Recession Losses

(NEW YORK) — The stock market is back. Five and a half years after the start of a frightening drop that erased $11 trillion from stock portfolios and made investors despair of ever getting their money back, the Dow Jones industrial average has regained all the losses suffered during the Great Recession and reached a new high. The blue-chip index rose 125.95 points Tuesday and closed at 14,253.77, topping the previous record of 14,164.53 on Oct. 9, 2007, by 89.24 points. “It signals that things are getting back to normal,” says Nicolas Colas, chief market strategist at BNY ConvergEx, a brokerage. “Unemployment is too high, economic growth too sluggish, but stocks are anticipating improvement.” The new record suggests that investors who did not panic and sell their stocks in the 2008-2009 financial crisis have fully recovered. Those who have reinvested dividends or added to their holdings have done even better. Since bottoming at 6,547.05 on March 9, 2009, the Dow has risen 7,706.72 ...

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Found more than 1 month ago on channel TIME Moneyland

Forbes: Slim world's richest for 4th year in a row

Mexican businessman's worth is $73 billion; Bill Gates, Amancio Ortega, Warren Buffett and Larry Ellison round out the top 5 list

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Found more than 1 month ago on channel CBS

Branson Among Foreign Billionaires Pledged to Gates Charity

For the first time, foreign billionaires are locking arms with U.S. counterparts to sign "The Giving Pledge"—a commitment to give half their wealth to charity created in 2010 by Warren Buffett and Bill and Melinda Gates."Early on, the Giving Pledge was predominantly an American phenomenon," says Peter Newcomb, a Bloomberg News editor who compiles Bloomberg's list of global billionaires. Giving away one's money, says Newcomb, is an idea that traditionally has been more appealing to Americans than Europeans. "It was not really a European sensibility. Now you're beginning to see that change."

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Found more than 1 month ago on channel Abc News

Gates and Buffett Expand Giving Pledge

Metals magnate Vladimir Potanin became the first Russian to join Bill Gates and Warren Buffett's Giving Pledge, one of a dozen international billionaires vowing to give at least half their fortunes to charity.

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Found more than 1 month ago on channel Wall Street Journal