Estate tax con game - Ahwatukee Foothills News: Commentary

default avatar
Welcome to the site! Login or Signup below.
|
||
Logout|My Dashboard

Estate tax con game

Print
Font Size:
Default font size
Larger font size

Posted: Wednesday, November 11, 2009 12:00 am

In a recent diatribe urging repeal of the federal estate tax, Republican state senator Pam Gorman (R-Anthem) tells a big, black lie. In 2011, she claims, the estate tax will rise to 55 percent. If true, that claim would mean a $55,000 tax on a $100,000 estate.

Here are the facts: for an estate less than $3.5 million, the current tax rate is ZERO! In 2011, according to Bush-era tax legislation, this minimum figure is scheduled to drop to $1 million. Also in 2011, a top of rate 55 percent would start at $3 million.

It is, however, virtually certain that Congress will repeal the decade-old tax legislation establishing the noted reversions. Exempted assets for federal estate tax will probably rise to $4 million, and the 55 percent top rate will apply only to the super wealthy, representing less than one per thousand estates.

An astonishing number of credulous Americans – concentrated among Fox News viewers – believe lies like Sen. Gorman’s. According to one poll, 49 percent believe that the majority of estates pay tax. In fact, only one in 600 pays estate tax.

The Reagan administration perpetrated an even more economically destructive lie – i.e., that tax cuts for the rich always increase federal tax revenue. Recent economic history demolishes this preposterous, but nonetheless relentlessly parroted myth. Of the past 11 former presidents, the two biggest debt creators got the biggest tax cuts for the rich. Reagan increased federal debt (as percentage of GDP) by 61 percent; Bush 43, by 26 percent.

In stark contrast, Clinton cut federal debt by 16 percent, after raising the top tax rate by 26 percent. During his two terms, employment increased 10 times more than under Bush 43; total GDP growth topped Bush’s by 50 percent (33 percent vs. 22 percent). I challenge “conservatives” to deny these incontrovertible facts.

Sen. Gorman’s arguments for abolishing the federal estate tax are as phony as other arguments for coddling the rich. Abolition of the estate tax would add $1 trillion to federal debt over the next decade. Her proposal is redundant evidence of Republican plutocracy: government of the naive masses, by and for the rich.

 

C.W. Griffin has lived in Ahwatukee Foothills since 1988. He is a retired consulting engineer.

More about

More about

More about

  • Discuss

US schools can rescue civics education, if only the left and the right will let them

America’s founding fathers viewed education as an essential tool for preserving democracy. In school, Americans would learn democratic ideals,…

Published: December 11, 2016 - 6:53 am @ http://qz.com/839041/american-values-are-at-risk-i…

Owner of stolen car chases down and shoots suspect

PHOENIX - Phoenix police say a suspect is in the hospital recovering from a gunshot wound after being chased down by the owner of a stolen veh…

Published: December 11, 2016 - 6:13 am @ http://www.abc15.com/news/region-phoenix-metro/cen…

Standing Rock 'water protectors' use break to help other indigenous causes

For months, Julie Richards has been planning for the battles that would come the moment that she was no longer needed at the Standing Rock enc…

Published: December 11, 2016 - 4:22 am @ https://www.theguardian.com/us-news/2016/dec/11/st…

This week at progressive state blogs: OK's Pruitt now America's problem; guns may go anywhere in MO

Rob Schofield at The Progressive Pulse of North Carolina writes—Revenge of the robber barons continues: Trump’s disastrous “anti-family, anti-…

Published: December 11, 2016 - 3:22 am @ http://www.dailykos.com/story/2016/12/10/1609381/-…

Thousands of people show support for kids hospitalized during the holidays in Phoenix

PHOENIX, AZ - About 2,000 people showed their support Saturday night for children battling an illness and are stuck at the hospital for the ho…

Published: December 10, 2016 - 10:46 pm @ http://www.abc15.com/news/region-phoenix-metro/cen…

On Kirk Douglas's 100th Birthday, Remembering His 1990 Visit to the Mexican Border

This is a tribute to Kirk Douglas. It has only a tangential connection to immigration. I'll explain that at the end. The world knows Douglas f…

Published: December 10, 2016 - 10:19 pm @ http://cis.org/kammer/kirk-douglass-100th-birthday…

Crews battling brush fire in Cochise County

COCHISE COUNTY, AZ (Tucson News Now) - Firefighters are responding to a brush fire south of Sierra Vista, according to Coronado National Fores…

Published: December 10, 2016 - 9:38 pm @ http://www.tucsonnewsnow.com/story/34024021/crews-…

NOW: Multiple people injured after multi-car accident in Phoenix

PHOENIX - Officials are investigating a crash involving multiple cars in Phoenix. Fire crews were called to 95th Avenue and McDowell Road Satu…

Published: December 10, 2016 - 8:45 pm @ http://www.abc15.com/news/region-phoenix-metro/wes…

Desert Botanical Garden

An exciting and diverse lineup of the best musical entertainment Arizona has to offer. Learn More Enjoy a Southwest Mexican-American menu, pre…

Published: December 10, 2016 - 8:37 pm @ https://www.dbg.org/

Hairspray Live! is event television at its sloppy finest

The nonsensical but utterly magical trend of major broadcast networks producing expensive and messy live musicals continued last night with NB…

Published: December 10, 2016 - 8:37 pm @ http://www.theverge.com/2016/12/8/13882382/hairspr…

Facebook

ahwatukee.com on Facebook

Twitter

ahwatukee.com on Twitter

RSS

Subscribe to ahwatukee.com via RSS

RSS Feeds

Spacer4px

Most Popular

Online poll

Loading…