Abolishing the death tax is a good measure according to most. However this is a measure that goes to the root of the conflict between the haves and have nots. Imagine a tax on the wealthy before they pass their gross wealthy to their children. ...And from the have nots viewpoint they are filthy rich pigs. Imagine to pay any death tax, the person has to be worth over 750,000. To attain the higher rate of 57%, the deceased has to have had assets of over $3 million. For so many on a small salary, public assistance, crime, family support, whatever... This tax is the stuff dreams are made of.
And so, this is a tax that is difficult to void. Those have-nots love it. Money passing from them rich people to themselves! According to what sources you read, the tax produces more or less income. Many sources say that it costs more to collect it that it yields. Voiding this tax is a very popular measure, Iím sure youíve noticed that on the Internet.
Economic reasons are advanced. Many heirs loose their businesses as a result of paying the tax, causing higher unemployment. The losses from higher unemployment rates easily offset, any benefits for the poor paid for by the tax.
The tax may also cause investment to escape the area. As it does at the state level where some suffer double taxes.
Todayís families are paying an average of 40 percent of their hard-earned dollars in taxes. People are working five months a year just to pay their taxes. Last year, federal receipts - income, social security, excise and other taxes - totaled 20.5% of the gross domestic product. 1998 taxes were a larger percentage of GDP than at any time since 1944. Mrs. Dole is painfully aware that the typical American family has to work the first 5 months of the year, exclusive to pay for taxes.