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'Death Tax Looms'

Christopher Bergin | Nov. 5, 2009 10:32 AM EST

Reading this morning’s excellent Tax Analysts publication Tax Notes Today, this headline caught my eye: “Graves Says Death Should Not Be Taxable.” Tax headlines can be funny even if they don’t mean to be.

Seems there’s this Congressman whose name is Sam Graves. He’s a Republican from Missouri – the show me state. He’s also the ranking member of the House Small Business Committee, which yesterday held a hearing on the federal estate tax. We’re going to hear a lot more about the federal estate tax because it is set to expire (pun intended – why not join in) for one year starting next year. That bit of absurd tax policy comes from tricksters like Congressman Graves who went on a marketing campaign several years ago to kill the federal estate tax by calling it the “death tax.” That campaign really ticked me off – in part because it was like trying to sell a Pinto as a sports car and in part because it worked, sort of.

According to Congressman Graves, “Death should not be a taxable event. The notion that the federal government is owed anything upon the death of a family member is outrageous.”

You know what’s really outrageous? That guys like this get away with continuing to call the federal estate tax the death tax.

So, one more time, Congressman: IT’S NOT A DEATH TAX! Get it? It’s a tax on the transfer of an estate. BIG DIFFERENCE! And most estates will never be affected by it. You and your friends get a lot of mileage out of your false advertising, but it’s still false advertising.

Comments (1)

"Death tax" is not such an outrageous nickname for the federal estate tax.
After all, an income tax liability is triggered when you earn; a sales tax
liability is triggered when you make a sale; and an estate tax liability is
triggered when you ___. It seems that champions of estate taxation want to skip
over the death part for the same type of public relations reasons that Rep.
Graves wants people to say "death tax" instead of the legally correct "federal
estate tax."

Furthermore, at the state level, "death tax" is the legally correct
terminology. And finally, just for plain English, "death tax" is a convenient
term for referring generically to inheritance taxes and estate taxes.

But Chris, before you let your outrage at Rep. Graves pass, make sure its
affairs are in order.

P.S. Enjoying Tax.com

Posted by Bill Ahern on Nov. 5, 2009 at 12:44 PM


Call the estate tax whatever you want, the fact is in this economic environment
we are in, I hope that Graves is successful. The estate/death tax does prevent
small businesses from growing, it does line the pockets of the Warren Buffetts
of the world, and it is basically a bad part of a broken tax policy.

Don't believe me? Visit

estatetaxtruth.org

Posted by michael coyne on Nov. 5, 2009 at 06:28 PM


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