Wealthy Families First

I've finally done it -- started a blog.  This is my first post, and what a time to start.  The Senate leaders plan to bring up a vote any day on the elimination of the federal estate tax.  People accuse the current Congress of being for sale to the highest bidder.  It's not always true, but appears to be here.

Only those individuals with taxable estates in excess of $2 million and couples with taxable estates over $4 million (with a minimum of planning) pay any federal estate tax.  More than 99 percent of estates pay no tax at all.

So, why shouldn't these wealthy estates pay something in taxes?  There are a lot of specious excuses, but the main reason is that those lucky or talented enough to have such large estates just don't want to pay the tax and are willing to pay for the campaign to repeal the tax.  (See the following article: http://www.elderlawanswers.com/resources/article.asp?id=5374&section=4.)

No one wants to pay taxes.  But we do want the services and security provided by our government -- education, Social Security, Medicare, Medicaid, roads, the military, border protection, national parks, etc. They cost money.  If the revenue does not come from estate taxes, it will have to come from another source, either higher taxes on the income the other 99 percent is working so hard to generate or more borrowing to be paid off by future generations. 

Neither approach is fair public policy.  Equity requires the continuation of the estate tax.  While $2 million seems to me to be a more than fair threshhold, it may make sense to graduate the rate that beginning next year will be a flat 45 percent.

If you agree that we need the estate tax, call your senator today.

Don't worry, future postings on this blog will not be so political.  It's just that the travesty Senator Frist proposes to foist on the American public has got me going today.