With the U.S. estate tax hitting the century mark there are many questions arising as to its value.
The much discussed estate tax has now reached its 100th birthday sparking considerable study on the reasons to repeal the law as Forbes recently listed in “Top Five Reasons The Death Tax’s 100th Birthday Should Be Its Last.”
The reasons listed include:
- The estate tax actually does not generate a lot of money for the federal government. It amounts to less than 1% of government revenue.
- There are reasons to believe that the estate tax hurts the economy as the money could be otherwise used to create jobs and increase wages. It is possible that repealing the estate tax could generate more revenue thanks to increased growth.
- Resources are wasted when people attempt to avoid the estate tax. Those resources could be used elsewhere.
- If the goal is to tax the wealthy, there are several other options for doing so that could generate more revenue and cost less economic growth.
- The majority of Americans are not in favor of the estate tax.
Of course, this is only one side of the policy debate. Those in favor of the estate tax could also give reasons for keeping it.
An estate planning attorney could help guide you through the estate tax laws.
Reference: Forbes (May 3, 2010) “Top Five Reasons The Death Tax’s 100th Birthday Should Be Its Last.”
