Barack Obama wants to "restore" the estate tax that George W. Bush "repealed."
Chain email on Wednesday, July 23rd, 2008 in a chain e-mail
Bush didn't repeal it; Obama would expand it
Here, we'll look at the e-mail's claims about Barack Obama and the estate tax, which it refers to as the inheritance tax. For an examination of the e-mail's other claims, read our full article here .
The e-mail claims that President George W. Bush "repealed" the estate tax, and it now stands at 0 percent. Though Bush reduced the tax, he did not repeal it. Rather, under his 2001 tax cut package, the estate tax reduces every year and then goes away for just a single year — 2010 — before reverting back to higher rates. (See the nonpartisan Tax Policy Center on estate taxes for more details.)
Currently, the estate tax generally applies only to estates worth more than $2-million (or $4-million for couples). Above those amounts, the tax rate tops out at 45 percent. Both Obama and McCain support renewing the current estate tax with a few changes. McCain proposes to increase the exemption to $5-million ($10-million for couples) and reduce the tax rate to 15 percent. Obama proposes to increase the exemption to $3.5-million ($7-million for couples) and leave the top rate at 45 percent.
So the e-mail is wrong when it says McCain wants a "0 percent" estate tax and that Obama wants to "restore" it. We rule this statement False.