Search Terms: death tax repeal
Document 22 of 30.
Copyright 2000 The San Diego Union-Tribune
The San Diego Union-Tribune
June
14, 2000, Wednesday
SECTION:
OPINION;Pg. B-10:2,7; B-14:1
LENGTH:
486 words
HEADLINE:
The
death tax; Repeal
the most unfair of all federal levies
BODY:
"You ought to be able to leave your land and the bulk of your fortunes to your children and not to the government."
So said Senate candidate Hillary Rodham Clinton during a recent campaign appearance at an upstate New York dairy farm.
Perhaps the first lady ought to bend the ear of her husband, the president. For he promises to veto "without hesitation" a House-passed bill that would phase out the onerous estate tax that looms over family-owned farms and other small businesses, not only in New York but throughout the country.
Ever the class warrior, the president asserts that the House's repeal of the estate tax is a Republican giveaway to the rich. But he conveniently overlooks the fact that the measure, which would phase out the so-called death tax over 10 years, was supported by 65 of his fellow Democrats.
The House bill was sponsored by Rep. John Tanner, a Tennessee Democrat, and Rep. Jennifer Dunn, a Washington Republican. Among the bill's co-sponsors were a number of black and Hispanic Democrats, as well as liberal lawmakers who normally scorn any kind of tax cut.
These 65 Democrats recognize that, among all of the taxes imposed by the federal government, none is more unfair than the death tax, which far too often causes grieving heirs to sell family-owned businesses to pay federal taxes at rates of up to 55 percent.
And while the death tax affects only 2 percent of Americans each year, it is opposed not only by that unfortunate 2 percent, but by many of the unaffected 98 percent as well.
This was borne out by a recent Zogby poll. It asked: "Presently, if you were to leave a large estate to your heirs, the federal government would tax everything over $
1.2 million at a rate of 50 percent. Do you agree or disagree that this is a fair amount to tax your estate?" An overwhelming 86 percent, representing every income strata, disagreed.
Yet, the White House characterizes the proposed phase-out of the death tax as a "windfall" for the rich. The president warns that the House-passed legislation would cost the federal treasury $
750 billion from 2010 to 2020, after repeal is fully in place.
But an analysis by Congress' Joint Economic Committee comes to a different conclusion. It notes that the estate tax generates barely 1 percent of federal revenues, hardly a sum that makes or breaks the federal budget. Moreover, the compliance costs associated with the tax are almost equivalent to the revenue yield.
So repealing the levy would have a negligible effect on the federal government's bottom line.
Hillary Clinton was right when she told those dairy farmers they ought to be able to leave the bulk of their fortunes to their heirs, rather than to the government. And the House Republicans and Democrats were right to pass legislation that phases out the death tax not only on family farms, but on all family-owned busineses and other assets.
LOAD-DATE:
June 16, 2000
Document 22 of 30.
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