During recent debate on Estate Taxation in the Senate, Senator Harry Reid was highly frustrated that 10 Democrats agreed with all of the Republicans. The issue was a 35% Estate Tax versus the 45% that President Obama and Reid want to impose. Obama and Reid also want an exemption for estates under $3.5 million where the amendment wanted more exemptions – all estates valued at under $5,000,000 per person.
An estate tax is a tax on the assets of a person at death. In most cases, the person’s estate, or more accurately, his assets, have already been taxed once (at least). I guess the theory is that dead people don’t complain and it is a huge source of revenue for our Federal Government. I’m not sure I see how Congress can justify taking almost half of an estate and leaving the other half for the heirs.
My understanding is that most farms and businesses passed down through estates fall into the size that they are burdened by estate tax. These are the same farms and small businesses who employ a large percentage of our population. Someone needs to tell me how taking all this tax from people who employ others is going to help stimulate our economy.
“We can only turn the page from recession to recovery if we watch every single taxpayer dollar the way families watch every dollar in their budget,” said Reid trying to make us believe this is a move that will help the economy. He is watching “every single taxpayer dollar” but he didn’t have time to read the stimulus bill before spending almost a trillion of those same “taxpayer dollars.” Nobody expects Superman to be able to watch every dollar but for Reid to say he is doing something that he is obviously not doing make him a prime target for names like ‘Hypocrite” or “Political Hack.” I think both fit.