Reform the Gift Tax Annual Exclusion to Raise Revenue
4 Pages Posted: 25 Jul 2011
Date Written: July 25, 2011
In this article, Professor Crawford proposes limiting the gift tax annual exclusion to outright transfers and transfers in trust that will be included in the beneficiary’s gross estate.
The proposal is made as a part of the Shelf Project, a collaboration among tax professionals to develop proposals to raise revenue. The Shelf Project is intended to raise revenue without a VAT or a rate hike in ways that will improve the fairness, efficiency, and rationality of the tax system. An overview of the Shelf Project is found in “How to Raise $1 Trillion Without a VAT or a Rate Hike,’” Tax Notes, July 5, 2010, p. 101, Doc 2010-13081, or 2010 TNT 129-4. Congress enacted its first Shelf Project in March, 2010. Shelf Project proposals follow the format of a congressional tax committee report in explaining current law, what is wrong with it, and how to fix it.
Keywords: gift, gift tax, annual exclusion, present interest, GST, Crummey, shelf project
JEL Classification: K34
Suggested Citation: Suggested Citation