Estate Tax – Voting Against it Bayh’fore Voting for It
The Estate Tax
Senator Evan Bayh (D-Ind.) voted for the 10 year phase out of the estate tax in 2001, but voted against it in early June. He explained his position this way:
“I support eliminating the estate tax, especially for small businesses and family farmers,” Bayh said in a statement released by his office. “During times of surplus, I’ve voted to eliminate the estate tax. Unfortunately, today we face mounting deficits and would be forced to borrow more money from China and ask our children to pay it back with interest. That is not a responsible course.” -ft.wayne.com
First off senator either you feel the tax needs to go or you don’t, we’re not talking about hundreds of billions of dollars here. The tax is already set to phase out why would he effectively vote for the tax to come back to life? Only in the insane world known to those in the U.S. Congress does one phase something out, only to bring it back into effect the year after it ends. I should mention that Bayh was not alone in his flip flop, democratic senators Mary Landrieu (D-LA), Ron Wyden (D-OR), and Mark Pryor(D-AR) also pulled an about face.
The estate tax (using 2004 data and estimates) raised only $20 billion from 30,000 taxpayers (about half the estate filers) in 2004, and at least $8 billion less as of this tax year given the raise in the exemption to $4 million. Now since this tax was already scheduled to bring in less and less money each year until expiration how would voting to not bring it back to life years from now effect revenue today or next year? It doesn’t. What does make more sense of course is the $1.05 billion in attorney’s fees the estate tax generates each year.
If the senator is looking to recover a few billion in revenue from somewhere I have a suggestion. He should trade his vote for ending the death tax in exchange for some in the GOP to vote for his START Act. It seems Jon Kyle will at least get something done on the issue in the senate by offering up a compromise plan that at least keeps some of the higher exemptions and lowers the tax rates. Certainly Sen. Bayh will vote for such a compromise right?
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