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April 26, 2006

18 Rich Families Seeking Estate Tax Repeal

It appears that the effort to permanently get rid of the estate tax is being funded by 18 of the wealthiest families in America in an effort to save themselves $71.6 billion. These families include the founders of Wal-Mart, Gallo wineries, Nordstrom's, Campbell Soup Co., Mars candy company, and Cox media chain.

This year, all assets under $2 million for individuals and under $4 million for couples are exempt from estate taxes. Current tax law will boost those exemptions to $3.5 million and $7 million in 2009, eliminate the estate tax in 2010, and reimpose it in 2011 with a $1 million exemption.

Sen. George Voinovich is seeking a compromise that would set the exemption at $3.5 million and adjust it for inflation. This would exempt the vast majority of Americans from paying the tax.

Grover Norquist of Americans for Tax Reform says 68 percent of Americans want the tax eliminated. He says estate taxes affect a broad range of people and dismissed the report's contention that it only affects the super rich as "tired rhetoric of hate and envy."

I understand Norquist's argument and the whole underlying philosophy even though I have come to mostly disagree with it. What it comes down to really is the question of whether the "haves" owe any obligation to financially support the rest of society, and whether the "have nots," by virtue of their status as members of society, have any right to benefit from the wealth of other members of society. It's a fascinating issue and I'd like to hear what you think about it.

Posted by Becky at April 26, 2006 12:04 PM

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