“How to Play the Tax War”
Wall Street Journal, September 11, 2010
Carol Harrington addressed estate and gift tax issues in an extensive story about tax law issues facing Congress yet this year. Congress allowed the estate tax to expire 2010, but unless Congress acts the gift tax rate will rise in January and the generation-skipping tax will return. It is unclear how Congress will deal with these issues when considering the fate of the estate tax. Ms. Harrington said it would seem unfair to impose the taxes retroactively for 2010 this late in the year, but added, “If they [Congress] are hunting for pennies in the sofa cushions, who knows what will happen?” She is advising wealthy clients to plan for taxable gifts in 2010 but not to act until December, at which point the law could be clearer and unnecessary taxes could be avoided.