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Saturday, September 24, 2005

Republicans on Prowl for Victims of Both Estate Tax and Katrina

From Time:

Federal troops aren't the only ones looking for bodies on the Gulf Coast. On Sept. 9, Alabama Senator Jeff Sessions called his old law professor Harold Apolinsky, co-author of Sessions' legislation repealing the federal estate tax, which was encountering sudden resistance on the Hill. Sessions had an idea to revitalize their cause, which he left on Apolinsky's voice mail: "[Arizona Sen.] Jon Kyl and I were talking about the estate tax. If we knew anybody that owned a business that lost life in the storm, that would be something we could push back with."

If legislative ambulance chasing looks like a desperate measure, for the backers of repealing the estate tax, these are desperate times. Just three weeks ago, their long-sought goal of repeal seemed within reach, but Katrina dashed their hopes when Republican leaders put off an expected vote. After hearing from Sessions, Apolinsky, an estate tax lawyer who says his firm includes three multi-billionaires among its clients, mobilized the American Family Business Institute, a Washington-based group devoted to estate tax repeal. They reached out to members along the Gulf Coast to hunt for the dead.

It's been hard. Only a tiny percentage of people are affected by the estate tax—in 2001 only 534 Alabamans were subject to it. And for Hill backers of repeal, that's only part of the problem. Last year, the tax brought in $24.8 billion to the federal government. With Katrina's cost soaring, estate tax opponents need to find a way to make up the potential lost income. For now, getting repeal back on the agenda may depend on Apolinsky and his team of estate-sniffing sleuths, who are searching Internet obituaries among other places. Has he found any victims of both the hurricane and the estate tax? "Not yet," Apolinsky says. "But I'm still looking."

Tax Blog commentary:

  • Stuart Levine (Tax and Business Law Commentary):  "My advice to Sessions and Apolinsky: Don't give up. I understand that Mt. St. Helens has been somewhat active lately. Perhaps, if it perks up a bit more, you can sell the idea of appeasing the volcano gods by sacrificing a billionaire who will be allowed to pass on his or her estate without the imposition of the estate tax."
  • Joel Schoenmeyer (Death and Taxes Blog):  "Pity those "poor" folks pushing for repeal of the estate tax. They're up against a wall (so to speak), as Hurricane Katrina forces the nation to really look at and think about poverty."

For prior shameless attempts to link Katrina with estate tax repeal, see here and here.

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