Last week the House of Representatives voted to extend the current estate tax rates. They would remain 45% after an exemption of 3.5 million dollars or 7 million dollars for a married couple. Next year, under current law the estate tax would disappear for 1 year and then come back with a vengeance at a rate of 55% with only a $1 million dollar exemption.
This tax will probably never affect me personally, however, I feel that this is an immoral and (should be) illegal confiscation of personal property. It sounds like a lot of money doesn’t it? I mean 7 million dollars is a large sum of money to me; however, we need to put that into perspective. Think of a family farm with with tractors, trucks, land, barns, etc. It doesn’t take a long time to rack up that kind of money. A new John Deere Combine costs over a quarter of million dollars. Good farm land is thousands of dollars per acre. Farmers these days many times have a semi truck for transporting grain-again this is hundreds of thousands of dollars. It adds up quick.
Not just farms, but think of small businesses with buildings, equipment, inventory, supplies, etc. It adds up quicker than you would think. Think of the people that they employ. Could many businesses survive the government coming in and taking 45%? Forget about passing your business down to your children.
It just doesn’t make sense. A man who was already taxed on his earnings once by the I.R.S. while he was alive is taxed again after he can no longer speak for himself. There simply should be no taxation without respiration!
I really don’t know how the Democrats sleep at night knowing that this tax looms out there waiting to destroy family businesses and farms. I really don’t know how anyone could justify this kind of legal racketeering.