Posted by Congressman John Campbell at 12:00 am on Oct 19, 2009 Comments Off on Death Tax, Financial Regulation, and Saving Your Own Money
Death Tax: When I am home in California, I get
many questions about legislation relating to the Death Tax. As many
of you know, the Death Tax currently kicks in at a 45% rate for
estates over $3.5 million. But under current law, the tax will go
away on January 1st, 2010 for 1 year. Then, it comes back on
January 1st, 2011 at a 55% rate for estates over $1 million. This
strange vacillation in the tax and the exemption has occurred in
order to comply with arcane House rules calling for no increase in
the deficit more than 10 years out from when the reduction in the
death tax was passed. Obviously, the idea that the tax would go
away and then come back 12 months later at its highest level in a
decade is ridiculous public policy. There is universal agreement
that this has to be changed.
But that’s where the agreement ends. Most Republicans, including
this one, believe that the tax should be permanently eliminated.
This wealth has already been taxed at least once when it was
earned. Furthermore, this is a very inefficient tax. The
direct costs of collection are actually over 50% of the tax
collected. And many studies show that the government… Read More