Skip to comments.Kill the 'death tax' (A former CBO director argues for elimination of the federal estate tax)
Posted on 05/06/2009 6:58:29 AM PDT by SeekAndFind
Few taxes raise less revenue or make less sense than the federal estate tax. It is scheduled to be temporarily eliminated -- for 2010 -- only to reappear in 2011, and it has been a sore spot to family business owners since its inception. Research shows that these concerns are legitimate -- and, if anything, understated.
Faced with the sunset provision, the White House would like to lock in the current tax rate permanently -- 45% of total assets over $3.5 million at the time of death. At the same time, some members of Congress are pressing to raise the rate and lower the exclusion, while others would like to do just the reverse.
One thing's for sure: Something needs to be done. The uncertainty helps no one.
In this instance, policymakers should put aside partisanship and politics and base their decisions on what we know about how the estate tax affects the economy.
We know that high estate tax rates provide small-business owners with a powerful incentive to limit the size of their companies. Why would a business owner want to expand his or her company beyond a certain size if the end result will be a large "death tax" bill that will negate much of the hard work and sacrifices the owner and the owner's family made over the years?
We know too that many business owners, faced with the tax, will make the rational decision to spend their business' profits rather than reinvest them in the company.
And we also know that if profits aren't being pumped back into businesses, and the businesses aren't growing, they also are not hiring.
(Excerpt) Read more at latimes.com ...
Obie and the Dems have made it clear they DGARA about revenue generation. It is all about wealth redistribution and social engineering via the tax code. Period.
I see Nancy Pelosi's "black hand of death" involved in this one.
I agree that the death tax should be eliminated. Unfortunately, it won’t happen with this group of liars and thieves currently running Congress and the WH.
Would you happen to know how many developed countries in this world has a death tax ?
I for one know that Australia does not have one.
How about Europe ?
I have never understood why the government should get a portion of an estate upon the death of the estate’s owner. The income was already taxed as it was accumulated. Other assets of the estate were also taxed when aquired.
“I have never understood why the government should get a portion of an estate upon the death of the estates owner.”
It’s called envy. Democrats don’t think it’s “fair” for some to inherit wealth while others don’t. They literally would prefer to live in a world with less pie for everyone simply to avoid a world with a bigger pie that is less evenly divided than they would prefer.
Of course, the dumbest Democrats still don’t understand the perverse effects of the estate tax on entrepreneurial effort; hence they foolishly imagine that this tax actually generates revenue to help bankroll their aspirations to provide Americans with a cradle-to-grave teat on which to suck...
In 1981 Bill Wrigley, Jr. (Wrigley's Gum empire) had to sell the Chicago Cubs to pay a 'HUGH' Death Tax after his parents died. That's how and why the Tribune Co became the Cubs owner (subsequently sold to Sam Zell). The Trib paid $20,000,000.00 for the Cubbies, which immediately went to 'the beast' in D.C.
And iirc, it was similar for the Comiskey family and the Chicago White Sox. That's how Bill Veeck got major control of the Sox back in the late 70's. The Comiskey family had to pay a HUGH death tax.
So the Death Tax affects 'the rich' too.