Wednesday the House voted to end the Federal Estate Tax. Rep. Christopher Cox, R-Calif said those pushing to retain this tax "still want to pry lots of cash out of the cold dead fingers of America's deseased enterpreneurs". Lets be clear. This would cost between $30 -40 Billion EVERY YEAR from the federal tax revenue which is already $675 Billion short of a balanced budget in 2005. In 2009, the law would priovide a $3.5 Million per person exemption and then begin imposing the tax on estates above that amount. A couple could pass $7 Million without tax to their children.
Who will bebefit by eliminating the Federal Estate Tax? The Super Rich- with a $3.5 Million exemption less than 1% of the population! The question is where in this money needed more- to help with a budget that is already in trouble or to help a few that do not need the help. The idea that this tax will "pry lots of cash from the dead" is incorrect. The dead do not pay taxes. It is the living, the people that will receive this money, that will pay the Estate tax. Here is a starting point to say we must change what we are doing to begin finding ways to balance the Federal Budget. Keep the Estate Tax and establish exemptions of several million per person and then retain the tax on amounts that exceed a reasonable exemption. Allow the tax to be defered on family farms and businesses that pass to members of the family.
America holds the opportunity to make it on your own not simply from what your parents give you after their death! Write to Congress and President Bush to retain the Federal Estate Tax !