Business Leaders Attack Proposal To Repeal Death Tax

by Leroy Baker, Tax-News.com, New York

05 March 2004

A group of influential business leaders, including the former Federal Reserve Chairman, Paul Volcker, are leading a campaign against President Bush’s proposal to axe inheritance taxes, arguing that the move will unfairly benefit a tiny minority of wealthy Americans.

“Nearly half of all estate taxes are paid by the wealthiest 0.1% of the American population – a few thousand families each year. Repealing the estate tax would result in multi-million dollar tax cuts to this tiny sliver of Americans,” the group, known as Responsible Wealth, observed, continuing:

“The estate tax is our most progressive tax and an important source of revenue, as well as an incentive to recycle wealth through the non-profit sector.”

Volcker contended that repealing the law represents “poor social and tax policy,” especially given the current level of federal debt, and has called the proposal “fiscally irresponsible.”

The group went on to comment: “We recognize the importance of protecting America's family farms and small businesses, and the estate tax has many special provisions that do so. But this concern — the rationale usually advanced for eliminating the estate tax — can be addressed by amending the existing estate tax system.”

Volcker is due to give a speech on the issue in Washington later in the month.

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