Opponents Of Death Tax Speak Out

Press Release

The old saying goes that "you can't take it with you." Opponents of the federal estate tax believe the U.S. government would never allow it anyway.

The U.S. House could vote today on a measure extending a tax on estates of $3.5 million or larger. The rate would top out at 45 percent.

Proponents insist the tax would only affect the richest Americans. Others claim farmers and small business owners should also feel at risk.

Northwest Missouri Congressman Sam Graves calls the move "a money grab" that unfairly penalizes families that built equity in their businesses and properties over the years.

"They have paid taxes already on that accumulation," the Tarkio Republican said Wednesday. "Now to say because you died the government is owed something, it's just plain wrong."

During his first congressional term in 2001, Mr. Graves voted for cuts in the estate tax. Though he wanted permanent elimination of the tax, Congress passed incremental cuts that will result in the estate tax elimination in 2010, then its resurrection in 2011.

The bill before lawmakers gives a permanence to the new rates.

Because the top rate is not indexed for inflation, more people will pay the tax each year. Mr. Graves, in a call from his Capitol Hill office, said the exempted amount might sound high until calculating the worth of long-established businesses.

"It doesn't take much in the way of equipment," he said. "If you're a small manufacturing business, there you are, you're past the exemption."

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