James A. Leach: “I favor reform of the estate tax to protect family farmers and small businesses, but I have grave qualms about its…”

“I favor reform of the estate tax to protect family farmers and small businesses, but I have grave qualms about its elimination for super-sized estates. What is credible is an increase in the estate tax exemption to $5 or 10 million. What is undue and unfair is the elimination of the tax on huge estates. From a legislative perspective, the circumstance is clear cut. The House has the option of passing an approach which the Senate will ignore or it can pass a credible reform which has a chance of becoming law and taking effect this year. The Democratic alternative to the House Republican position is not sufficiently progressive, but passage of the $3 million exemption it calls for would be a significant improvement on the current circumstance and holds the prospect of immediate compromise with the Senate at a somewhat higher level. The problem with current law, which the bill before the House today would make permanent, is that it provides for a sudden elimination of all estate taxes in the year 2012, but because of its graduated provisions does not allow for the estate tax exemption to reach $3 million until 8 years from now. The American market system works best as a meritocracy. What will be created with the elimination of estate taxes on super-sized estates is a monied oligarchy. This is neither good for our economy nor our democracy.”