Resolving the Estate Tax is Difficult Due to Moral Issues

Congress has unsuccessfully sought to resolve the estate tax issue at least a half-dozen times since 2000. Every time there’s almost an agreement, similar to last December, someone leaves the table in the belief that they can get a better deal next time. There are currently three main congressional factions (as I previously blogged), none of which have the 60 votes needed to advance their estate tax proposal.  Obama met with these congressional leaders on December 1 in hopes of finally settling the issue.   

Coming to a compromise is more difficult than just splitting the numbers down the middle in this case because the estate tax is surrounded by moral issues, such as destroying family businesses. Lee Farris, senior organizer of a Boston-based group that advocates reinstating the estate tax, commented that “[p]eople are more dug in on their estate-tax positions on both sides than they are on the other positions.”

Congress Battling Over Proposed Estate Tax Solutions, Financial Advisor, Nov. 30, 2010.

Special thanks to Jim Hillhouse (WealthCounsel) for bringing this to my attention.