Tax Notes has published an article by Jay Starkman, CPA. The article emphatically states that retroactive tax law is constitutional, and provides historical support and case precedent for this premise.
See Jay Starkman, "Can an Estate Tax Be Retroactive?" 2010 TNT 37-10, February 25, 2010, or click here to access the article.
Posted by Neil I. Rumbak, Associate Editor, Wealth Strategies Journal.
See Jay Starkman, "Can an Estate Tax Be Retroactive?" 2010 TNT 37-10, February 25, 2010, or click here to access the article.
Posted by Neil I. Rumbak, Associate Editor, Wealth Strategies Journal.
Retroactivity is not particularly relevant until Congress passes a retroactive bill. The question at this time is whether a retroactive bill can make it through both houses. The likelihood of retroactivity is inversely proportional to the number of estates of the politically powerful which will be affected. Had Ted Kennedy died this year, leaving an estate subject not only to the 16% Massachusetts levy but also potentially subject to a retroative federal 45% tax on the remainder, you can bet that the sympathy card would be pulled on behalf of his grieving widow and other beneficiaries. Who would want to take money from his disabled son? As of now, retroactivity is a political, not a fiscal or legal, issue.