Kenneth F. Scheve Jr. and David Stasavage: Is the Estate Tax Doomed?Roundup: Media's Take
tags: New York Times, taxes, estate tax, taxation, Kenneth F. Scheve Jr., David Stasavage
Kenneth F. Scheve Jr. is a professor of political science at Stanford University. David Stasavage, a professor of politics at New York University, is the author of “States of Credit: Size, Power, and the Development of European Polities.
Under the deal struck by President Obama and Congress to avert the “fiscal cliff,” the estate tax — long targeted for elimination by Republicans — survived, but in a substantially diminished form.
In 2001, the year George W. Bush became president, individual estates over $675,000 were taxed and the top rate was 55 percent. Now, the maximum tax is 40 percent and only individual estates worth more than $5.25 million are taxed (a figure that will now be automatically adjusted for inflation).
The estate tax has a history as long and controversial as the income tax. Its first modern version appeared in the federal tax code in 1916, three years after the ratification of the 16th Amendment, which authorized the federal income tax. Advocates of the estate tax see it as a crucial tool for raising revenue and a buffer against the sharp, nearly inexorable rise in inequality over the past four decades. Opponents, who call the levy “the death tax,” say it penalizes savers, harms growth and interferes with parents’ ability to pass on their wealth to their children....
comments powered by Disqus
- Marine Corps investigating photo of iconic flag-raising on Iwo Jima
- Scholars Blast New Study Tracing Ashkenazi Jews to Khazars of Ancient Turkey
- Legendary Explorer’s Long-Lost Ship May Have Been Found Off Rhode Island
- More Doubts, Opposition To Sale Of Unique, Hartford Collection Of Political History
- How the Curse of Sykes-Picot Still Haunts the Middle East
- The Historian Whitewashing Ukraine’s Past
- Andrew Roberts wins $250,000 prize from the conservative Bradley Foundation
- Daniel Aaron, Critic and Historian Who Pioneered American Studies, Dies at 103
- Liz Covart's amazingly popular podcast helps her audience understand early American history
- Justus Rosenberg is still teaching at age 95