IREF - Institute for Research in Economic and Fiscal issues
Fiscal competition and economic freedom
The Heritage Foundation launches a campaign against the dreaded estate tax (also known as the "death tax") in the US. In the coming weeks, Congress will once again take up debate on the death tax, which expires for one year, beginning on January 1, 2010, before coming back in full force on January 1, 2011. Some in Congress are eager to prevent the death tax from expiring for even one year. Those that don’t want the tax to die will likely argue for a one-year extension of the tax at its current rate and exemption levels.
This would give them the opportunity to raise the tax higher in 2011. Another option could be a permanent extension of the tax at current levels. According to the Heritage Foundation scholars, neither is a good option. The death tax is a drag on America’s family-owned businesses, destroys jobs, and lowers the wages of workers while raising little revenue. Congress should repeal the estate tax once and for all to remove this unnecessary burden from the weakened economy.