The Right Coast
May 07, 2005
More on the Estate Tax
By Mike Rappaport
As long as we are coming clean, I too must admit to being somewhat agnostic about eliminating the estate tax. Sure reducing taxes is great, but the question is whether eliminating the estate tax is worth raising taxes somewhere else. (Or, if we are planning on reducing taxes, whether we should eliminate the estate tax rather than lowering marginal rates on income taxes.)
The effect on small businesses strikes me as the strongest argument for eliminating the estate tax. Still, there may be other alternatives. Off the top of my head, I could imagine allowing the tax to be paid over a ten year period or when the business is sold, whichever occurs first.