One of the many changes that President Trump would like to see in the federal tax code is the elimination of the estate tax. However, Democrats have traditionally been opposed to that. In order to get any tax reform passed it appears, that a few Democrats in Congress will be needed to vote for it.
Recently, White House advisor Gary Cohn, met with a few Democratic senators to lobby them for tax reform efforts.
To try to convince them on the estate tax, Cohn is reported to have argued that only morons pay it, as CNBC discussed in "'Only morons pay the estate tax,' says White House's Gary Cohn."
The White House has denied that is the exact language Cohn used. However, regardless of the language, the sentiment behind the comment is not entirely wrong.
While it is not true in all cases, most of the time the estate tax can be avoided through planning with your Cincinnati estate planning attorney.
The people whose estates end up paying the tax are those who have not done much estate planning or those who have other reasons for not avoiding the estate tax in their planning.
Of course, this does not bring the parties any closer together.
The White House argues that money spent to avoid the estate tax is an economic waste, so the tax should be eliminated.
Democrats argue that ways to avoid paying the tax should be eliminated.
Remember: “An ounce of prevention is worth a pound of cure.” When making your estate plans or when probating an estate or administering a trust, do not go it alone. Be sure to engage a Cincinnati estate planning attorney.
For more information about estate planning, probate or trust administration in Cincinnati (and throughout the rest of Southwest Ohio) and to review free resources regarding estate planning, probate or trust administration, visit my website. If you have questions regarding this article or a particular legal matter, feel free to contact me at 513-399-PLAN (7526).
Reference: CNBC (Aug. 29, 2017) "'Only morons pay the estate tax,' says White House's Gary Cohn."