Comments: Drat

Got any evidence of this? Because as far as I can tell, this is simply not true.

The defenders of estate tax repeal always SAY that the tax affects working farms and small(ish) businesses, but they NEVER cite even a single example of one. Why? because there simply AREN'T any real world examples.

There are already provisions in the existing estate tax code that effectively exempt family owned farms and businesses, and there are certainly ways of fixing the holes in those provisions if needed.

You need to cite real people, who really were affected by the estate tax, to be taken seriously. Handwaving about the way you think the law works just ain't gonna cut it, because the law doesn't work the way you think it does.

Posted by Bones at February 2, 2004 05:51 PM

Do I know people who have nearly lost family farms because of estate taxation? I do.

Am I going to give you their names to prove there are 'real world' examples behind my opinions? I am not. I don't have their permission to advertise their names or their personal situations on the internet.

Posted by Anne at February 3, 2004 08:39 AM

Sorry, Anne. Your recitation is not based on fact. Any farm worth millions that was encumbered with big mortgages would pass to the new generation with the mortgages taken into account. In other words, only the equity would be taxed.

In addition, the estate tax is purely voluntary, because it is so easy to get around. Based on the normal mechanisms known to any local lawyer, any estate that pays the estate tax most likely belonged to a dead person who simply chose to pay it. Moreover, no estate worth less than $1 million has to pay any estate tax. And, estate tax is owed only on any amounts over $1 million.

See: http://www.irs.gov/businesses/small/article/0,,id=98968,00.html#unified

Anne, you've fallen for a line here.

--LB

Posted by Lead Balloons at February 3, 2004 10:17 AM