It’s just not fair. “The death of a family member should not be a taxable event, period,” said Rep. Kenny Hulshof, R-Mo. After a long, often misleading repeal campaign, polls indicate most Americans accept that simple appeal to fairness. When the House on Wednesday passed Hulshof’s bill to permanently kill the tax, the 272-162 vote included regrettable support from Democrats such as 9th District Rep. Rick Boucher.
The Senate should take a more sober look at the bill. Against its superficial “fairness” stand compelling arguments for restoring a revised estate tax after 2010, the year it temporarily expires under legislation passed in 2001.
• The cost - $745 billion in revenue over 10 years - is staggering, especially in light of huge projected deficits and spending needs. The figure rises to $1 trillion when increased interest payments are included.
• Contrary to the propaganda, repeal is not necessary to protect family farms and small business. Only 2.1 percent of inherited estates, averaging nearly $2.7 million in value, were large enough to pay the tax in 2001. Some analysts say repeal could actually hurt middle-class heirs more than it helps by subjecting them instead to higher capital gains taxes and cumbersome reporting requirements.
Related Leave a Comment
No comments yet.