Repealing the estate tax

Deb Fischer and Don Bacon both co-sponsored legislation to repeal the estate tax. In an effort to make it sound more appealing, they use the language of calling the estate tax, the “death tax.” This gives Bacon and Fischer conservative credit. The estate tax is only levied on those above a certain threshold for their estate’s value, $5.45 million per person or $10.9 million per couple. According to the Joint Committee on Taxation, there were 2.6 million deaths in the United States in 2013 and there were 4,700 estate tax returns filed.

Fischer and Bacon would likely argue that family farms and small businesses are unfairly attacked by the death tax. The Tax Policy Center estimated that 80 small farms and businesses will pay an estate tax in 2017. They further estimate that the total paid by these farms and businesses will be $30 million in 2017. The Congressional Budget Office noted that a family farm could lower the amount of estate tax owed by a special method of calculating the value.

According to the Center on Budget Policy and Priorities, repealing the estate tax would reduce revenues to the federal government by $270 billion over 10 years. Both Fischer and Bacon campaigned heavily on fixing the debt and deficit. They both think that this should be a top priority to fix. However, fixing it would now require an additional $27 billion per year for each of the next 10 years.  While both Bacon and Fischer have endorsed and voted for spending cuts for the federal government, most of it is not enough to completely fix the budget. Even if there wasn’t a need for an additional $27 billion cut/year.

 

 

 

Advertisements