In a report on a congressional race this morning, NPR mentioned the candidates views on the estate tax. It noted that Republican incumbant was opposed to "taxation without respiration [good line]." It then reported that the Democratic candidate claims that the estate tax did not harm small farms and businesses because it has exemptions of $3-$4 million. Well, this was not just a claim by the Democratic candidate, it also happens to be an accurate description of the law. There is a large exemption (I'll have to check the latest number -- it rises through time under the current law), with special provisions to allow any tax owed on a family farm or business to paid out over 10 years without penalty. It is not impartial to characterize one candidate's recitation of facts as a "claim." People may still oppose the estate tax, but it is fact that it has almost no impact on anything that most people would consider a "small" business or family farm.
--Dean Baker
