ECONOMICS - LOOKING GLASS NEWS | |
18 rich families pay for campaign to kill estate taxes |
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by Sabrina Eaton Cleveland.com Entered into the database on Wednesday, April 26th, 2006 @ 14:05:59 MST |
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Eighteen of America's wealthiest families, including the Timkens of
Canton, are bankrolling efforts to permanently repeal estate taxes that would
save their families a total of $71.6 billion, according to a report released
Tuesday by public interest groups. Groups funded by the super-rich have engaged in a deceptive campaign
to convince the public that estate taxes cause widespread problems for small
businesses and family farms when they actually affect about one in 370 estates,
said the report released by Public Citizen and Boston-based United for a Fair
Economy. This year, all assets under $2 million for individuals and under $4 million
for couples are exempt from estate taxes. Current tax law will boost those exemptions
to $3.5 million and $7 million in 2009, eliminate the estate tax in 2010, and
reimpose it in 2011 with a $1 million exemption. The House voted to permanently repeal the estate tax last year, but the measure
stalled in the Senate, where 60 votes are needed to override filibusters. Majority
Leader Bill Frist says he will bring the bill up in May. Ohio Republican Sen. Mike DeWine wants to repeal the tax because he says it
hinders economic growth and penalizes society's most productive members, while
Ohio GOP Sen. George Voinovich says the cost of eliminating it is too great:
about $290 billion over the next 10 years. Voinovich would prefer a compromise
to elevate the minimum threshold for estate tax liability to $3.5 million and
regularly adjust it for inflation. Groups that support estate tax repeal say they're close to getting the 60 votes
they need. Grover Norquist of Americans for Tax Reform says 68 percent of Americans
want the tax eliminated. He says estate taxes affect a broad range of people
and dismissed the report's contention that it only affects the super rich as
"tired rhetoric of hate and envy." The groups that released the report called it a "myth" that estate
taxes force families to sell farms and businesses. They said the taxes raise
revenue from those most able to pay, prompt the rich to give to charity and
deter concentrations of wealth. They said families including those that founded Wal-Mart, Gallo wineries,
Nordstrom's department stores, Wegman's grocery stores, the Mars candy company,
Cox media chain and Campbell Soup Co. joined the Timkens in bankrolling an effort
the groups' report called "one of the biggest con jobs in recent history."
The report says the 18 families financed business groups, trade associations
and lobbyists to push for their goals. Information about their participation
was obtained through lobbying reports and IRS forms filed by anti-tax groups,
the report said. Based on the Timken family's estimated $201.5 million stake in its
company, the report predicted estate tax repeal would save its heirs about $79
million. A Timken Co. spokesman did not return phone calls. To reach this Plain Dealer reporter: seaton@plaind.com, 216-999-4212 |