The Death Tax Costs More Than It Yields

By May 4, 2006General

The week of the Death Tax Summit, when scores of small manufacturers have descended upon Washington to plead their case, here comes the non-partisan Joint Economic Committee (JEC) with a study of the impact of the death tax. It’s findings were startling: The study found that from the time period 1942 to 2001, the death tax brought in some $761 billion. So far, so bad. But here’s the clincher: Over that same time period, estimates the experts at the JEC, the death tax has cost the economy $847 billion in what the JEC calls “the reduced stock of capital.’ This means money that would have been invested or saved, had it not been squandered on the death tax, as well as any interest on the investments triggered by this money.

In short, over the last 60 years, this tax has cost more to collect than it brought in to the federal treasury. Along the way it has brought down many a good small manufacturer and forced others to take on crushing debt. The President, in his remarks to the American Council of Engineering Companies in Washington today, called for permanent repeal of the death tax.

Hope you’ll click here to drop a note to your Senators and tell them to permanently repeal the death tax that’s already repealed to 2010. Tell them to finish the job.