| |
|
|
| Year |
Increase/
Decrease |
Legislation |
| 1797 |
Increase |
Federal stamp
tax imposed on certain estates. |
| 1802 |
Decrease |
Stamp tax repealed. |
| 1864 |
Increase |
First estate
tax enacted due to Civil War. Rates: 0.75% to 5%. |
| 1870 |
Decrease |
Estate tax repealed. |
| 1894 |
Increase |
A flat 2% "death"
tax enacted due to Spanish American War. |
| 1902 |
Decrease |
Congress repeals
death tax. |
| 1916 |
Increase |
Estate tax reenacted
due to World War I. Rates: 1% to 10%. |
| 1935 |
Increase |
To "redistribute
wealth" maximum estate tax raised to 70%. |
| 1948-1975 |
Increase |
Estate and gift
tax rates rise as high as 77% and 57.5%, respectively. |
| 1976 |
Decrease |
Modern gift and
estate tax legislation adopted. Rates drop to 70%. The Unified Tax
Credit (UTC) is adopted, initially sheltering $175,625 of property.
|
| 1976-1980 |
Decrease |
Step up in basis
restored in 1980, but carryover will resurface in 2010 for one year
because of Economic Growth Tax Reform and Reconciliation Acto of 2001. |
| 1980s |
Increases/ Decreases
|
Scheduled rate
drops are frozen in 1987 at 55% and never progress further. UTC shelters
$600,000. Qualified retirement plans, once completely exempt from
estate taxes, lose their exemption and add a 15% estate tax surcharge
for accumulations over certain amounts until 1997. |
| 1990s |
Increases/ Decreases
|
Various proposals
surface regarding UTC. They range from reducing its shelter value
to $200,000 to increasing its shelter value. Ultimately scheduled
to increase to $1,000,000 of shelter value. 5% surcharge added in
large estates to phase out UTC. Effective rate for estates subject
to phase out is 60%. Proposals surface, in late 1990s, to repeal estate
taxes. |
| 2000s |
Decreases |
Congress passes
bill to gradually raise the exemption and lower rates for the estate
tax, which affects about 2 percent of decedents. The estate tax will
be repealed in 2010, but will resurface in 2011. |
