R epublicans claim it is unfair to impose a "death tax" on income already taxed during a person's lifetime. House Majority Leader Dick Armey said that it is like "someone showing up at the funeral home and saying, 'Hi, I'm from the government, and I'm taking half your money.'" In a Republican weekly radio address, Representative Jay Dickey of Arkansas said that persons who create "something they can pass on to their children" should not be penalized. "Government shouldn't punish success." An article in Fortune compares Sam Spendthrift, who spends all his accumulated wealth during his lifetime and pays no estate tax, with Frank Frugal, who invests in the economy and uses his money for constructive purposes. Why should Frank Frugal have to pay a high estate tax for his thrift?
As President Clinton countered, repeal would primarily benefit the very rich (only 43,000, or 2 percent, of all estates are taxed), and half the estate tax is paid by the largest 5 percent...