BAILOUT BILL KILLS DEATH TAX…for foreign investors only !

In its moment of greatest crisis in our lifetimes, Congress has conceded one of AFBI’s strongest arguments….though probably without realizing that it was.

Hidden in the recent rush to judgment of the $850,000,000,000.00 so-called “Emergency Economic Stabilization” (aka “Bailout Bill”) was an unnoticed amendment to the federal estate tax – the Death Tax.

In its frantic drive to do anything to maximize investment at this moment, Congress wanted to make sure that foreigners had an incentive  to invest in U. S. mutual funds.  And what did Congress deem a powerful incentive to investment?  Getting rid of the Death Tax!

That’s right.  Foreigners who invest in American mutual funds won’t have to pay a Death Tax on their American holdings.   After all, those foreigners can buy British or Swiss mutual funds just as easily.  And would, without this provision. 

In other words, Congress recognized that imposing the Death Tax on foreigners investing in U.S. mutual funds was foolish and counterproductive. 

Attention Congress: imposing the Death Tax on Americans investing in the U.S.funds is also foolish and counterproductive! 

It is rather twisted that Americans don’t have the same freedom.  The Death Tax means that there is less capital in the U.S. which means fewer jobs, lower wages, and even lower federal revenues.

Oh, and did we mention fairness…freedom…legacy?

If getting rid of the Death Tax is good for foreign investors, it would be good for American investors too.

Here is the language of the bill, with thanks to AFBI researcher Don Sheff:

From page 270 of the bill, H.R. 1424: 

8   31, 2007