Today’s quiz topic is the federal estate tax, which is a tax on property – like cash, real estate, stock, or other assets – that is transferred from deceased persons to their heirs. Lawmakers will have to decide soon whether to make the current temporary repeal of the estate tax permanent or to renew the tax in some form.
Here’s today’s quiz:
What percentage of estates will have to pay the estate tax if it is restored to its 2009 level?
a. Less than 1%
On average, estates that owe estate tax pay___% of the estate’s value in tax
b. Less than 20%
d. Over 50%
True/False: Before the estate tax expired this year, many small farms and businesses had to be liquidated to pay the tax.
True/False: Most Americans pay the estate tax.
Reminder: we’re posting a quiz every day this week on a key issue facing lawmakers this fall. We’ll post the answers each afternoon. If you keep score on your own and send an email to [email protected] at the end of the week with your score, we’ll send you one of our newly-designed Center on Budget T-shirts.