Federal Death Tax Repeal
The estate tax, or "Death Tax," is one of the most inefficient and immoral features of the current tax system. The Federal death tax raises only about 1 percent of federal revenues, yet is very costly to the economy. It imposes yet another high tax rate on savings and investment and places a huge tax penalty on the sale of assets for older small business owners. It has created a large and wasteful estate-planning industry to help people avoid the tax if they hire enough lawyers and accountants. Funds used for estate planning reduce capital available to reinvest in more productive opportunities. Studies indicate that for every $1 raised by the tax, roughly $1 is lost from avoidance, compliance, and enforcement costs. The inheritance tax law that created the Federal death tax should be permanently eliminated, thereby stimulating growth and raising incomes for everyone.