Wednesday, May 31, 2006

Estate Tax Lunacy

Harold Meyerson foolishly editorialized in WaPo The Senate, meanwhile, is scheduled next week to take up legislation by Arizona Republican Jon Kyl that would permanently repeal the estate tax on the wealthiest Americans.

Actually no one that died would have the money they left their heirs confiscated, not just rich people. No taxation without respiration.
If enacted, Kyl's bill would plunge the government another trillion dollars into the red during the first decade (2011-2021) that it would be in effect.
Spending is what plunges the government into the red..
Behind the scenes, the action has been on the Democratic side in the Senate, as the party's leadership has sought to dissuade Montana's Max Baucus, ranking Democrat on the Finance Committee, from forging a halfway-house compromise with Kyl that would deplete revenue by only $500 billion to $600 billion during that decade. The Republicans would need Baucus to bring roughly a half-dozen Democrats along with him to reach the magic number of 60 votes required to overcome any filibuster that the vast majority of Democrats would mount to block any such measure.
I wish him luck.
Even a paltry $500 billion, of course, is a lot of money to drain from public coffers
A tax cut does not drain anything from the public coffers; it just does not put more in them.
just when boomers are going onto Social Security and Medicare and the number of employers providing health insurance, if present trends continue, might have dropped to a virtuous handful. To cover those and other needs, Congress will either plunge us deeper into debt or increase some other levies -- payroll taxes, say -- that will come out of the pockets of the 99 percent of Americans whom the estate tax doesn't touch.
And who may not even be hit by income taxes.

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