The Senate is set to vote on their tax plan today, a plan that differs from that previously passed in the House. The Senate’s plan only cuts about half as much in spending as did the House plan and allows for a continuing deficit. Will the two ever agree on one tax plan, who knows, but today I want to focus on one particular aspect of the two plans, they both eliminate the estate tax, better known as the death tax.
Democrats insist that both plans are geared to help the very wealthy and offer nothing for the middle class, that could not be further from the truth. It seems that any tax break that applies to someone who is self-employed or a business owner is considered by the left to be a break for the wealthy. Their attack regarding the elimination of the death tax clearly shows their lack of understanding of not only what America is all about, but also their not so hidden agenda of socialism. America used to be about the American dream, someone who was willing to work hard and take some risks could make a better life for themselves and for their families. While one can still rise in economic status, good luck passing it down to your children, the government apparently believes that “you didn’t build that”, so it most of it must belong to them when you die.
Since 2001, the exclusion amount as it relates to estate taxes has risen from $675,000 to $5.49 million. Now, to those not familiar with family owned businesses or small business, that may sound like a lot, but when you start adding up potential assets you find that, even an exclusion that may appear to apply only to the very wealthy, will affect many small businesses owned and operated by average, middle class Americans. Running a business is expensive and requires a great deal of capital, especially those that depend upon expensive equipment for every day operations. Family owned farms, think of the machinery needed to run a farm; trucking companies, certain types of trucks cost upwards of $200,000 a pop. A small trucking company, that owns the property it operates from and 15-20 trucks could easily be valued in excess of $5 million, even though the owners have an income that fits quite easily into an average middle class tax bracket.
It is beyond comprehension how anyone can believe that it is okay to take away from a family something they have worked hard to start and build. How can anyone condone a family having to sell a small, family owned business upon a parent’s death because they cannot afford to pay the estate taxes? Even a large business owned by the very wealthy, why does the government deserve to take a large portion of any company upon the owner’s death? Where is the incentive to work hard and take risks to better yourself when the government is just going to step in and take it upon your death?
Private sector businesses supply the jobs that make this country run, the vast majority by small businesses. Why then do we punish those that work hard and take the risks to build that business and create the jobs by taxing them right out of business? Estate taxes and the current tax code provide little incentive for people to take the risks and put in the effort necessary to build a business and create the jobs that the American people are so dependent upon. The policies of the liberal left are not based in any form of compassion or common sense, and the only ones that profit from them are the Washington elites. There is no compassion in a welfare system that traps people into a lifetime of dependence by giving handouts as opposed to a hand up, and there is no common sense in taxing those that work hard, whether self-employed or not, to a point that it takes everything left over just to survive with little left to climb the economic ladder.