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The Yankees Make History in 2010
July 14, 2010True, the New York Yankees are having a great year on the field; they’re leading the AL East with 56 wins and may even go on to the post season and win big. But that’s not the reason they will make history in 2010 – rather, it is the death of famous owner George Steinbrenner at age 80 on July 13, 2010 that will be remembered for being the day a billionaire sports celebrity died in a year without an estate tax. Steinbrenner truly owes amassing his incredible wealth to the team, as his $1.5 billion ownership share of the Yankees represents nearly his entire estate.
Mr. Steinbrenner is the fourth billionaire to die in 2010 with no estate tax. When the estate tax expired at the end of 2009 most assumed that Congress would act quickly to reinstate the tax at last year’s level, exempting $3.5 million then imposing a 45 percent tax rate. However, no action has been taken and, unless Congress acts, the tax will start up again in 2011 with a $1 million exemption and a 55 percent tax rate, which may not politically feasible according to those working the Hill. Further complicating the situation is the fact that, unless Congress makes the tax retroactive for 2010, we will lose $14.8 billion in potential revenue, which could be used to help pay down the deficit or aid job creation efforts.
How can Congress deny further unemployment benefits and fail to act on aid to the states to help support medical aid and avoid teacher and public safety layoffs, while billionaires are able to leave behind huge estates with no tax liability? Congress must demonstrate that it is willing to allow the estate tax to re-boot at the 2001 level, or enact tax levels that are commensurate with the scale of wealth accumulated by those who, like Steinbrenner, made their fortunes during some of the most robust growth periods in the US. Though most of us will not be directly affected by a lower or higher estate tax, only the wealthiest .25% paid the tax at last year’s level, most taxpayers will indirectly since the Treasury needs this revenue to invest in the economy and to help shore up its red scarred balance sheets. Bringing back a strong and permanent estate tax will make the US, like the Yankees, a winner in 2010.
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Please tell us the names of the other three billionaires who have died in 2010?
Oregon has had some very wealthy folks pass, such as Tom Holce and Al Reser.
The other three billionaires to die in 2010 are Janet Morse Cargill of the family that founded Cargill Inc. (net worth: $1.6 billion), Texas pipeline magnate Dan Duncan ($9.8 billion), and California real estate mogul Walter Shorenstein ($1.1 billion).
By rough calculation, when Steinbrenner’s wealth is added, their deaths in 2010 have cost the government some $6.5 billion.
[...] He is the fourth billionaire to die this year (http://www.responsibletaxes.org/blog/the-yankees-make-history-in-2010/) – the only year since 1916 when there has not been a federal estate tax (it’s currently [...]