By Kermit C. Moss

As reported on page 1B of the Arkansas Democrat-Gazette dated May 15, 2010, Blanche Lincoln continues to make statements about the estate tax that she either knows to be untrue, or should know them to be untrue! She said “Those hit hardest by the estate tax are small businesses, farms, ranches, those who are really producing the jobs in this country”. She further stated that “I don’t think that anybody in this room believes you should work all your life and then give 55% of it to the government”. The truth is that under President Obama’s proposed restoration of the estate tax the amount completely exempt from tax would be $3.5 million for individuals and $7 million for couples. Further, the tax is applied to the excess over these amounts in tiers, with the first tier taxed at 18%, with other tiers taxed at higher rates until finally the rate reaches 45% for the remaining taxable income. Thus, 45% of the total taxable income is never reached!

Reliable reports indicate that only 1 in 500 families pay the estate tax and that under the Obama proposal 99.76%of estates would pay no taxes whatsoever!

Further, these reports indicate that very few, if any, of Arkansas family farms would be liable for any tax at all, even the big, rich, highly productive Eastern Arkansas farm owned by Blanche and her family!

Kermit C. Moss
PO Box 1136
Monticello, AR 71657

PH 870-367-2486 - office
870-367-7034 - home

May 15^th , 2010