Estate Tax on Death Row?

For those experts who have thought in the past that the 65-year-old estate tax stood only a "modest" chance of ever being killed -- that modest chance has become a real possibility.

The House of Representatives passed H.R. 8, the so-called "Death Tax Elimination Act of 2000," by a comfortable margin. Now it goes to the Senate, where the outlook for passage is not so good.

Assuming it does not pass this time, at least the eventual abolition of this tax has been made more possible. As well it should be; not only is it a confiscatory tax, it is one that generates little or no net revenue because of the bureaucratic and legal costs of collecting it.

Lawyers, insurance professionals and financial planners have mixed feelings. Some might favor the bill as a reform that will protect family businesses, farms and other closely held investments. But others may see their livelihoods being threatened. Billions are spent by taxpayers on legal fees and insurance to avoid or pay for estate taxes. Elimination of estate tax would largely eliminate a whole segment of the financial planning industry. But in this writer's opinion, it would be good for taxpayers and the country. Next: Let's eliminate capital gains taxes.