Not much exemption Forbes, Ashlea Ebeling, May 6th 2010, http://www.forbes.com/forbes/2010/0524/investing-gift-taxbypass-trust-obama-estate-tax-limbo.

html, October 3, 2011 Under the crazy terms of the 2001 Bush tax cuts, the federal estate tax expired on Jan. 1, 2010 and then springs back to life on Jan. 1, 2011, with only $1 million in assets exempt from a stiff 55% levy on all assets not left to a spouse or charity.

What an estate tax is, vs an inheritance tax Dianne Reis, Attorney at lawCertified as an Elder Law Attorney by the National Elder Law Foundation., No date available, http://willsandprobate.com/FAQ/inheritance-estate.htm, October 8, 2011

An estate tax is a tax imposed on the deceased's estate as a whole. The executor fills out a single estate tax return and pays the tax out of the estate's funds. The heirs will only be held liable for the tax if the executor fails to pay it.

No middle class (or below) will be taxed Dianne Reis, Attorney at lawCertified as an Elder Law Attorney by the National Elder Law Foundation., No date available, http://willsandprobate.com/FAQ/inheritance-estate.htm, October 8, 2011 Every estate gets an estate tax deduction for all property received by the deceased's spouse, as well as a $5 million standard exemption for all other property. Thus, many middle class Americans will owe no federal estate tax.

Fed estate tax but no inheritance tax Dianne Reis, Attorney at lawCertified as an Elder Law Attorney by the National Elder Law Foundation., No date available, http://willsandprobate.com/FAQ/inheritance-estate.htm, October 8, 2011 The federal government imposes an estate tax on all citizens and residents of the United States. It imposes no inheritance tax.

ET: Not cost effective. Policy and taxation group, date unkown, http://www.policyandtaxationgroup.com/html/faq2.html, October 8, 2011 According to the Joint Economic Committee report, dated December 1998, the cost to comply and collect the tax is equal to the revenue raised.

70% of U.S. pop wants it gone. Policy and taxation group, date unkown, http://www.policyandtaxationgroup.com/html/faq2.html, October 8, 2011 In national polls, focus groups and instant response sessions - 70% of respondents believe that the "Death Tax" should be repealed.

Family business succession with the death tax Policy and taxation group, date unkown, http://www.policyandtaxationgroup.com/html/faq2.html, October 8, 2011 How does the "Death Tax" affect the succession of the family business to future generations? More than 70% of family businesses do not survive the second generation. 87% do not make it to the third generation.

Econ. Benefit of repealing the ET Policy and taxation group, date unkown, http://www.policyandtaxationgroup.com/html/faq2.html, October 8, 2011
In a study done by The Center for the Study of Taxation, it was determined that if estate, gift and generationskipping taxes had been repealed in 1971, by the year 1991 there would have been 262,000 more jobs, $46.3 billion more in GDP and $398.6 billion more in capital.

Double tax and highest tax rate Policy and taxation group, repeal estate tax, Date unknown, http://www.policyandtaxationgroup.com/html/repeal.html, October 8, 2011 Estate tax rates, which range from 41% to 47%, are substantially higher than other tax rates - the lowest estate tax rate is almost as high as the highest income tax rate of 39.6%. Moreover, the estate tax is imposed on earnings and assets that have already been subject to income, social security, and other taxes at the federal and state level.

No incentive to hand business down to heirs. Policy and taxation group, repeal estate tax, Date unknown, http://www.policyandtaxationgroup.com/html/repeal.html, October 8, 2011

Under the current tax system, it is cheaper to sell the familyowned business before death rather than pass the business to one's heirs. Growing business can not remain competitive in a tax regime that imposes rates as high as 47% upon the death of the founder/owner.

We need to encourage small businesses. Policy and taxation group, repeal estate tax, Date unknown, http://www.policyandtaxationgroup.com/html/repeal.html, October 8, 2011 Small business has long been recognized as the backbone of America's economy - employing almost 60% of the workforce and creating about two-thirds of the new jobs in the U.S. since the 1970's. Our tax laws should encourage rather than discourage the perpetuation of these businesses.

ET encourages consumption Policy and taxation group, repeal estate tax, Date unknown, http://www.policyandtaxationgroup.com/html/repeal.html, October 8, 2011 With Americans living longer, we need to encourage individuals/families to save and invest in order to plan for their future. However, the estate tax creates a disincentive to save, and instead, encourages consumption. The more assets one has at death, the more he/she may have to pay to the federal government (death taxes).

ET has harmed the economy Policy and taxation group, repeal estate tax, Date unknown, http://www.policyandtaxationgroup.com/html/repeal.html, October 8, 2011 The estate tax, which was intended to break up large concentrations of wealth and promote economic opportunity, has instead become a barrier to economic growth and job creation. This "disincentive to growth" effect of the estate tax is equivalent to doubling income tax rates. (Tax Foundation)

 estate tax impedes economic growth A joint Economic committee study: Chairman Jim Saxton Republican from New Jersey, Congress, May 2006, http://www.policyandtaxationgroup.com/pdf/JointEconCommrpt506.pdf, October 8, 2011

The estate tax impedes economic growth through high compliance costs and economic inefficiencies, and has reduced the stock of capital in the economy by approximately $847 billion.

Hinders self-employment and family run businesses A joint Economic committee study: Chairman Jim Saxton Republican from New Jersey, Congress, May 2006, http://www.policyandtaxationgroup.com/pdf/JointEconCommrpt506.pdf, October 8, 2011

The estate tax hinders entry into self-employment and breaks up family-run businesses, many of which lack the liquid resources needed to meet their estate tax obligations. The tax is also an impediment to upward income and wealth mobility.

the tax exacerbates inequality.

A joint Economic committee study: Chairman Jim Saxton Republican from New Jersey, Congress, May 2006, http://www.policyandtaxationgroup.com/pdf/JointEconCommrpt506.pdf, October 8, 2011

Much research indicates that the estate tax is an ineffective tool for fighting wealth and income inequality. In fact, some estimates indicate that the tax exacerbates inequality.

No impact on charity A joint Economic committee study: Chairman Jim Saxton Republican from New Jersey, Congress, May 2006, http://www.policyandtaxationgroup.com/pdf/JointEconCommrpt506.pdf, October 8, 2011

The benefits of the charitable deduction are often overstated, with recent research indicating the tax has only a modest, if any, impact on gifts to charity.

Repeal of estate tax will not result in revenue loss for fed. Gov.
A joint Economic committee study: Chairman Jim Saxton Republican from New Jersey, Congress, May 2006, http://www.policyandtaxationgroup.com/pdf/JointEconCommrpt506.pdf, October 8, 2011

The estate tax clearly results in some losses in the federal income tax, meaning that the true net revenue of the estate tax is less than the official, static measures of its revenue yield. Although the exact magnitude of the effect is not known, some research suggests that repeal of the estate tax will not result in a revenue loss for the federal government.

deduction exerts only a modest, if any, stimulative effect. A joint Economic committee study: Chairman Jim Saxton Republican from New Jersey, Congress, May 2006, http://www.policyandtaxationgroup.com/pdf/JointEconCommrpt506.pdf, October 8, 2011

Recent research indicates that the charitable deduction exerts only a modest, if any, stimulative effect. In fact, the estate tax may actually be a significant barrier to charitable giving, as estate taxes crowd out charitable bequests.

Hinders social mobility A joint Economic committee study: Chairman Jim Saxton Republican from New Jersey, Congress, May 2006, http://www.policyandtaxationgroup.com/pdf/JointEconCommrpt506.pdf, October 8, 2011

Because the estate tax disrupts the transmission of family wealth to succeeding generations, the estate tax hinders upward income mobility. One study estimates that the estate tax will consume 11 to 13 percent of African-American wealth over the next 50 years. With the number of minority-run businesses surging in recent years, the estate tax will come to affect more and more such firms.

The cost of the ET A joint Economic committee study: Chairman Jim Saxton Republican from New Jersey, Congress, May 2006, http://www.policyandtaxationgroup.com/pdf/JointEconCommrpt506.pdf, October 8, 2011

A 2001 study found that approximately 2.6 million acres of forest land must be harvested each year to pay for the estate tax. Another 1.3 million acres must be sold to raise funds to pay estate taxes, of which close to one-third (29 percent) is either developed or converted to other uses.

Ben F. quotes and the link A joint Economic committee study: Chairman Jim Saxton Republican from New Jersey, Congress, May 2006, http://www.policyandtaxationgroup.com/pdf/JointEconCommrpt506.pdf, October 8, 2011

Benjamin Franklin observed over 200 years ago that in this world nothing can be said to be certain, except death and taxes.1 Death and taxes may indeed be inevitable, but the simultaneous convergence of the two in the federal estate tax has produced one of the most contentious components of the federal tax code.

The cost benefit mismatch A joint Economic committee study: Chairman Jim Saxton Republican from New Jersey, Congress, May 2006, http://www.policyandtaxationgroup.com/pdf/JointEconCommrpt506.pdf, October 8, 2011

When the costs of the estate tax are paired with the benefits, the mismatch is easy to discern, with the costs far exceeding the benefits.

Liberal opinion of how unfair the ET is. A joint Economic committee study quoting Henry Aaron and Alicia Munnell two prominent liberal economists: Chairman Jim Saxton Republican from New Jersey, Congress, May 2006, http://www.policyandtaxationgroup.com/pdf/JointEconCommrpt506.pdf, October 8, 2011

In short, the estate and gift taxes in the United States have failed to achieve their intended purposes. They raise little revenue. They impose large excess burdens. They are unfair.

Discourages work and savings in favor of conspicuous consumption.

A joint Economic committee study: Chairman Jim Saxton Republican from New Jersey, Congress, May 2006, http://www.policyandtaxationgroup.com/pdf/JointEconCommrpt506.pdf, October 8, 2011

First, the estate tax fails on liberal and progressive grounds because it discourages work and savings in favor of conspicuous consumption.

low-income households have substantial amounts of wealth

A joint Economic committee study: Chairman Jim Saxton Republican from New Jersey, Congress, May 2006, http://www.policyandtaxationgroup.com/pdf/JointEconCommrpt506.pdf, October 8, 2011

Federal Reserve Bank of Minneapolis Quarterly Review found that many low-income households have substantial amounts of wealth, and vice versa. For example, the average wealth of the bottom 1 percent of the income distribution is enough to place such a household in the top wealth quintile.

Two negative impacts to the charity incentive of ET A joint Economic committee study: Chairman Jim Saxton Republican from New Jersey, Congress, May 2006, http://www.policyandtaxationgroup.com/pdf/JointEconCommrpt506.pdf, October 8, 2011

Formal research into the impact of a reduction in estate taxes generally finds that there are two opposite effects. First, there is an increase in the tax price of making a donation, which dampens the tax benefits of giving. Second, there is an increase in the amount of after-tax wealth, which boosts giving by augmenting available resources.