Estate Taxes

The Senate is debating the estate tax again. The Republican goal is, as ever, to abolish the tax so that inherited wealth can accumulate more easily. Not that they actually come out and say that of course! No. That would be stirring up a nasty class war, which, of course we mustn’t do because that might burst one of America’s myths about itself.

Instead they whip up all sorts of nonsense about small business people not being able to leave the family business to their kids because of the rotten and infamous “death tax”. As with most of what the right wingers conjure up nowadays they mislead in order to accomplish their hidden agenda. Robert Reich has this good take on the estate tax at TomPaine.com: Estate Tax Pyramid Scheme. Even the Washington Post, a paper that’s been falling over itslef to support the Bush regime’s ugliest features has some criticism of the proposed repeal, read their editorial here: WAPO Editorial: Death and Taxes

So while the Federal Reserve Board is contemplating turning the screws on the economy to curb inflation even though wages and jobs are not exactly booming; and while the budget deficit rages along out of control, our wonderful Senate is seeking to add to that self same deficit by getting rid of a tax that only affects a very small and very rich section of the community. It is no coincidence that the lobbying efforts against the estate tax is led by the family that owns Wal Mart. Now aren’t they just a bunch of regular small business folks trying to get by like the rest of us?

Repeal of the tax will cost around $650 billion over a decade, plus around $175 billion in interest costs to finance the extra borrowing. That adds up to some serious real money.

I love it when the Republicans reach out to their friends and ask them to help the country in its hour of need. Such a patriotic bunch!