Hoping for an end to death tax

Christopher Cox

I sincerely hope that the headline on S.J. Cahn’s recent piece on the

death tax (“Estate tax headed for a GOP stake in heart this time”)

will prove to be accurate.

What I can say with certainty is that Cahn is completely correct

that I have been waging a long campaign against the death tax. Cahn

reports with 100% accuracy that if I have my way, no one will ever

pay this tax again.

He is also correct when he reports that most Americans favor a

repeal of the death tax, and I believe I know why.

It relates directly to one sentence in Cahn’s piece that is not

entirely accurate. He states that in killing the death tax, my

colleagues and I “won’t be helping many people because the tax simply

doesn’t hit very many.”

In fact, while the intended targets of this tax were the very

rich, Americans at all income levels have unfortunately become the

unintended victims.

A 2003 study by Congress’ Joint Economic Committee reports that

the death tax is a leading cause of dissolution for thousands of

family run-businesses.

When a family business has to lay off workers and sell assets to

pay the 47% tax on all the business property and assets, the

employees who lose their jobs pay a tax of 100%.

The same study found that the death tax has reduced America’s

capital stock by almost half a trillion dollars, has cut our economic

growth, and has imposed huge tax-compliance costs on millions of

Americans who don’t pay the tax.

By several estimates, the tax-compliance and collection costs are

more than the revenue raised.

That’s why it’s time for the death tax to die.

* CHRISTOPHER COX is Newport Beach’s congressional representative.