Tuesday, November 10, 2009
The Heritage Foundation has published Seven Reasons Why Congress Should Repeal, Not Fix, the Death Tax, by William W. Beach:
The House and Senate may soon begin debate on what to do with the federal estate tax. If Congress fails to act before January 1, 2010, current law calls for death taxes to disappear entirely for one year before returning in 2011 at a top rate of 55% and a $1 million exemption of taxable estate. The 2009 tax rate is 45%, and the exemption stands at $3.5 million per taxpayer.
What should Congress do? Some Members want to permanently "fix" the death tax by reducing the top rate to 35%, which some pro-death tax policymakers suggest is a rate wealthy taxpayers could "afford." However, this would be the wrong move for Congress to make. Instead, policymakers should do what their voters want them to do, as revealed in poll after poll: They should repeal this tax and kill it, once and forever. ...
As Members of Congress consider whether to retain federal death taxes, they should ponder the principal reasons why they should join prior Congresses and repeal this tax.
- Death taxes discourage savings and investment
- Death taxes undermine job creation
- Death taxes suppress productivity and wage growth
- Death taxes contradict the central promise of American life: wealth creation
- Death taxes hurt those who have tied their savings up in land
- Death taxes hurt African-American business owners
- Death taxes hurt women business owners
: More on the Estate Tax -- The Heritage Foundation Speaks Gobbledygook