Talking Points on the Death Tax

Readers Forum: Tinkering around the edges of the death tax
Source: Tulsa World
Publication date: 2004-03-14
Arrival time: 2004-03-17

The U.S. Senate is debating whether to permanently eliminate the federal estate tax -- or death tax. Actually, most senators aren't so much debating the issue as much as they are looking for ways to postpone a decision over whether to permanently repeal the tax. As is usually the case in Washington, the politicians are finding it easier to tinker around the edges than to back something bold.

As a small businessman affected by the death tax, I think they're missing the point.

There are plenty of economic reasons to repeal the death tax. One of the most compelling is that the richest people in society -- the ones the death tax was primarily designed to target -- can afford expensive accountants, lawyers and estate planners to avoid paying the tax. It's the moderately well-to-do businessman who can't.

So it isn't the ultra-wealthy pushing the hardest for repeal of the tax; rather, small business owners -- including farmers and ranchers -- are the driving force behind the effort to permanently repeal the death tax. Most successful small business owners have invested a lifetime in building an operation from the ground up and they are understandably incensed that the federal government is taking away up to 55 percent of the business when the time comes to transfer ownership to a son or daughter.

But while small businesses feel the brunt of the death tax, it says something that the majority of taxpayers also support permanent repeal of the tax. Americans understand that only about 2 percent of taxpayers -- mostly small business owners, ranchers and farmers -- are directly affected by the death tax, but they still support repeal. People understand that it's simply un-American to rob a family of its legacy. This sentiment transcends age, political affiliation and socioeconomic status.

In a recent survey, respondents were asked if they would support or oppose a particular candidate if the only information available was his or her position on the death tax. Even after being told that 98 percent of taxpayers aren't affected by the tax, 58 percent said they would vote for a candidate who supported permanent repeal of the tax while 32 percent indicated they would vote for someone who supported keeping the tax.

Americans view the death tax as a direct assault on the American Dream.

I oppose the death tax because, as a small businessman who operates an auto dealership, I understand what kind of devastation the tax can wreak on a business. As is the case with many small businesses, my store has a relatively high asset value. A huge percentage of the total value of my business is tied up in things like property, buildings, inventory and equipment.

If my son were forced to pay a tax on 55 percent of the value of the business, he may very well have to liquidate. A lot of consumers who have come to rely on us for their transportation needs would be affected. Many people would lose their jobs. And scores of local charities and other deserving causes would lose a reliable source of support.

If the death tax is bad for business, and if the majority of Americans believe it's un-American, then why settle for anything less than total repeal? Congress ought to permanently and immediately repeal the tax in its entirety.

Anything less is just tinkering around the edges.

Joe Marina owns and operates Joe Marina Motors in Tulsa. He is chairman of the Oklahoma Auto Dealers Association and a board member of the American International Auto Dealers Association.

Publication date: 2004-03-14