Supply-side economics guru Arthur Laffer could have written the floor speech of CBC member Rep. William Jefferson (D., La.):Read the whole thing, and ponder why anyone would think the estate tax is a good idea.
The federal estate tax results in … slower economic growth, reduced social mobility, and wasted productive activity. Moreover, the costs imposed by the estate tax far outweigh any benefits that the tax might produce. It is unclear whether the estate tax raises any revenue at all, since most if not all of its receipts are offset by losses under the income tax.
In 2003, Congress’ Joint Economic Committee reported that the death tax brought in $22 billion in annual revenue, but cost the private sector another $22 billion in compliance costs. Therefore, the total impact on the economy was a staggering $44 billion. And, when one calculates the amount of money spent on complying with the tax, the number of lost jobs resulting from businesses being sold, or the resources directed away from business expansion and into estate planning, it is clear why this punitive tax must be eliminated.
Jefferson’s effectiveness as a pro-repeal spokesman unfortunately plummeted after his ejection from the House Ways and Means Committee amid an ongoing federal corruption probe.
Tuesday, July 11, 2006
The Estate Tax --
It's not just for whitey anymore: