The Week Ahead: Death Tax Summit

By May 1, 2006General

In 2001, the death tax was repealed until 2010. However, unless it’s permanently repealed, it comes back in 2011. How asinine is it for an estate tax to re-appear? How on earth can you do any estate planning? Once again, the triumph of politics over policy.

So this week, manufacturers will descend upon Washington from all corners of the country for the Death Tax Summit, to visit their members of Congress and Senators and urge them to permanently repeal the death tax. Here’s some information on the summit. Undoubtedly the WaPo will run another of its ill-informed and boneheaded editorials claiming that a $10 million estate qualifies as filthy rich. Don’t get us wrong — we’d love to have $10 million in the bank, but the fallacy is that a $10 million manufacturing company is a pretty damned small company. That’s what they don’t understand. To satisfy the taxes, these companies have to either be sold or take on an enormous amount of debt.

If you’re not planning on attending the summit, click here to drop a note to your Representatives to let them know yous stand with your manufacturing brothers and sisters who are here this week.

Join the discussion 4 Comments

  • Bob Shepler says:

    The death tax does affect middle income individuals and family owned businesses. Thousands and indeed millions of dollars a year are spent by businesses on estate tax planning services, attorneys, life insurance, etc., money which could be better used to hire addiiotnal workers, purchase equipment to make the business more efficient or even pay for better wages and benefits for existing employees. Avoidance and planning for the death tax are the primary cost to small and medium sized businesses. You should check out the “Death Tax Chronicle” which provides numerous examples of why the death tax should be repealed:

  • CJ says:

    That would be true Betty, if the Estate Tax actually affected middle class families. Only the wealthiest .27% of estates are taxed at all, while the rest of us 99.73% pay nothing. These are only the wealthiest of the wealthy and do not represent the middle class in any way. A study by the Congressional Budget Office found that only 300 farm estates and 223 family-owned businesses pay any estate tax each year, and the NYTimes couldn’t find a single instance where a family farm was sold to pay estate taxes.

  • Betty Lee says:

    I feel that the death tax should be repealed. If not repealed, at least put at a figure that is in proportion to when it was created. Even at 3 million you are taxing more middle income families than it was originally meant to get. And let us face it, if you are wealty you know how to create trust, etc. to get around it. In other words, the death tax is hurting the middle class and not the wealthy.

  • Michael Marston says:

    Some of the wealthist families in America have been secretly funding a campaign of disinformation regarding this issue. The majority of Americans no longer think repealing the estate tax is a good idea.
    Read the story..