Governor Romney's Tax Plan: Time has come for Death Tax Repeal
By Jeremy Sawyer • Thursday, August 9, 2012 3:37 pm
This content is provided by Americans for Tax Reform Foundation.
The federal estate tax was adopted in 1916 as a way for the nation, which was preparing to enter a major war, to raise revenue. The tax, assessed on a stock instead of on a flow as most taxes are, amounts to double taxation because the wealth being taxed was previously subject to income taxes. The current top rate is 35% and is scheduled to rise to 55% in 2013. Full repeal of the estate tax is a key plank of Governor Romney’s plan for tax reform.
Various studies have shown that repealing the estate tax would have many benefits. The CBO found that death tax repeal would save taxpayers $516 billion over 10 years. It also would eliminate the incentive for senior citizens to spend frivolously instead of passing down their savings to the next generation. Similarly, repeal would prevent the dissolution of many family businesses.
Moreover, estate tax repeal would have significant growth effects. A report co-authored by former White House economist and CBO director Douglas Holtz-Eakin found that death tax repeal would create 1.5 million jobs by growing the economy. Unemployment would fall by 0.9 percentage points, while investment would increase by 3 percent.
The increase in growth resulting from repealing the estate tax would have positive effects on federal revenue. Republicans on the Joint Economic Committee point out that the revenue currently generated by the estate tax is meager: $7.4 billion in FY 2011 (just 0.30% of federal revenue) and an estimated $11 billion in FY 2012.
Former Treasury Department economist Stephen J. Entin wrote in a 2011 report that repeal would boost annual GDP by 2.25 percent and capital stock by 6.1 percent by the end of 10 years. The effect of this growth would be to generate $548 billion in new revenue over the 10-year baseline, leading to a total increase of $89 billion that could be used to reduce other tax rates and further enhance growth.
Permanent repeal of the estate tax is a policy proposal that has been analyzed with positive results for quite some time. It is time to implement repeal and observe the resulting increase in prosperity.
This content is provided by Americans for Tax Reform Foundation. To donate to ATRF, click here.
Posted by Jeremy Sawyer on Thursday, August 9, 2012 3:37 PM EDT
Comments (6)
Post Your Comment
You guys made a great point, honesty is the key. I relaly enjoyed the video blog, sometimes people would rather hear comments than to read them.
>> Chakrya October 12, 2012 10:22 pm
h4ep8A jwksaqsbvnuy
>> rjgjrvosw October 13, 2012 3:49 am
sbyVAe , [url=http://mvflejmnfckt.com/]mvflejmnfckt[/url], [link=http://repphchckfad.com/]repphchckfad[/link], http://qayqkmobdsoh.com/
>> cbthuczyf October 14, 2012 1:43 am
smYSBG , [url=http://nockpibodtcp.com/]nockpibodtcp[/url], [link=http://ackabwqclnfs.com/]ackabwqclnfs[/link], http://hqfvzemfgrax.com/
>> gsqeczgxqg October 15, 2012 9:12 pm
What is ultimately fthnireging about the Patriot Act is how many people don't know what is actually in it = how many of their freedoms disappeared with the stroke of a pen and that it gets renewed time after time based on nothing of substance. When peaceful law abiding people are placed on a Terrorist Suspect list simply because they support the Constitution, fly an American flag in their yard and/or belong to a *large* church, there is something very very sick at the core of their government. When those same people refuse to believe they could possibly BE on that list for ANY reason, let alone those stated, the sickness has already claimed them, they just don't know it. They, as a group, have mutated from intelligent free thinking people capable of independent thought into mindless bleating Sheeples, eagerly drinking from the mainstream media community propaganda well and regurgitating that as fast food opinions. It's really sad when someone with one of THOSE tin foil hats tells me in a patronizing manner that MINE has slipped.America needs to be reeducated on a massive scale to turn the tide here. Starting with Grandma and Grandpa and working all the way down to grade schoolers. Like on a cult-rescue de-brainwashing scale. For every person I talk to who *gets* it, there are a thousand more who think I'm a nut-job conspiracy theorist who's off her meds.*Just because you're paranoid, doesn't mean there isn't really someone following you* used to be just a funny thing to say ..now it's an everyday part of life in America if you're paying even the slightest bit of attention to what's happening in and to your country. The Patriot Act is a glaring example of just that.People think the Patriot Act was mis-named. I disagree, based on the second definition of the word *patriot*.pab7trib7ot [pey-tree-uht, -ot or, especially Brit., pa-tree-uht] Show IPA –noun 1. a person who loves, supports, and defends his or her country and its interests with devotion. 2. a person who regards himself or herself as a defender, especially of individual rights, against presumed interference by the federal government.In definition 2, these are the very people the government wishes to denounce, decry, defame, control and silence through the mechanisms made possible via the *Patriot* Act. And actually, definition 1 people are part of definition 2. What gets you on the suspected terrorist list faster is if you no longer confuse the word *country* with the word *government*.
>> Estralla March 13, 2013 8:59 am
AZGD2G , [url=http://pvadkxbznutq.com/]pvadkxbznutq[/url], [link=http://mhamacbstsxk.com/]mhamacbstsxk[/link], http://xwsfvnvlnosj.com/
>> xjjzqrawke March 17, 2013 11:56 am
Add a Comment