Tax Repeal

Death tax repeal would provide relief for anywhere from 2 to 4 million disabled Americans who have parents with an income of more than $1 million, according to the statistics available from the U.S. Bureau of the Census and the Internal Revenue Service.

Death tax repeal would eliminate the policy initiated in 1916 to fund World War I. During the 20's and 30's the death tax was used to prevent concentrations of wealth.

Death tax repeal would end making dying is a taxable event. The federal government unjustly confiscates 55% of all estates over $675,000 (rising to $1 million in 2005).

Death tax repeal receives overwhelmingly support of the American public according to two recent polls: A December 2000 Zogby International poll found 71 percent of Americans think estate taxes are unfair. Another poll, conducted by McLaughlin & Associates, found an overwhelming 89 percent of Americans think the estate tax is unfair.

According to the IRS, 89% of all taxable estates were $2.5 million or less in size.

The United States has the highest death tax rate in the world at 55% (after credits and exemption, Japan's inheritance rate of 70% is an effective tax rate of 30% -- the effective tax rate for the U.S. is 44%).

Since 1980, state inheritance tax repeal (death tax repeal) has been enacted by twenty states.

About 49% of the estate tax is paid by estates under $5 million. Another 29% of the taxes are paid on estates between $5 million and $20 million. Estates over $20 million account for under 22% of all estate taxes paid.

Death tax repeal could increase citizens wealth by $500 billion, according to the U.S. Joint Economic Committee, an arm of Congress.

Death tax repeal would eliminate a "virtue tax", in the sense that it penalizes work, saving and thrift in favor of large-scale consumption. 

Death tax repeal would eliminate the enormous compliance costs associated with the estate tax are equivalent to the tax's revenue yield, or about $23 billion in 1998.