The lie of the anti-estate tax Democrat

LA Times ^ | 6/18/06 | Jonathan Chait

[Oshkalaboomboom]

WEEK AND A half ago, Democratic Sen. Blanche Lincoln of Arkansas took to the Senate floor to decry the estate tax as unfair. "I, for one, intend to fight for these family businesses, fight for these communities and fight for these jobs in rural America," she preached. It was all very moving. Especially if you stand to inherit an enormous fortune.

That same day, Lincoln again appeared on the Senate floor, this time to decry the lack of funding for federal anti-hunger programs. This too was unfair. Lincoln was particularly nonplused by the counter-argument that there was insufficient money for such programs.

I understand our current budget constraints. I know we all do," she said, "Yet I didn't create this mess."

Oh, you didn't? Let's look at the main causes of the budget mess. There's the 2001 tax cuts. Lincoln voted for those. There's the war in Iraq. Lincoln voted for that too. There's the Medicare prescription drug benefit, which she likewise supported. Other than that, how did you like the budget, Mrs. Lincoln?

Lord knows I'm no fan of Republican fiscal policy. But at least Republicans pretend they have some vague future intention of slashing the hundreds of billions of dollars from the budget it would take to balance out their tax cuts, even if everybody knows it will never happen. Anti-estate tax Democrats such as Lincoln, on the other hand, don't even have the charade of fake spending cuts to hide behind.

[Oshkalaboomboom]

Mr. Chait makes a good point, there really is no place in today's Democratic party for a fiscal conservative but if Lincoln were to switch parties she would be labeled as a RINO within months of switching.

[Nextrush]

And why not she comes off as a Clinton understudy faking herself to the right like Clinton did in Arkansas successfully for many years.

It doesn't hurt to be in bed with the big businesses that employ thousands of Mexicans like Tyson Foods. (They have the proper ID, right)

There's no doubt she's playing it right just like the Clinton's did. (Hillary on corporate boards of Arkansas companies like TCBY and Wal-Mart)

And that reminds me. "Wal-Mart World," the publication for the company's assocates featured an article about Dick Cheyney visiting headquarters in Bentonville back during the 2004 election. This same publication also featured an article in that election year showing a picture of Blanche Lincoln and saying how helpful she has been to Wal-Mart.

And no wonder Lincoln was able to win so easily.

But tell me which filibuster has she tried to break lately.
Another firm Democrat vote to block good policies and ideas
with votes the other way when Harry Reid doesn't need it to win the issue.

[Born Conservative]

So Lincoln doesn't want rich heirs to pay any inheritance tax on their windfall. She wants middle- and lower-income workers to pay lower taxes as well. And she doesn't want to slash the federal budget. So, who does she want to pay more in taxes?

Libs just don't get the concept that we don't need MORE people paying MORE taxes; a strong economy will increase tax receipts even after LOWERING taxes (as is currently happening).

[Coldwater Creek]

It just depends on whose ox is being gored. The senator's family are farmers, and she knows that most of her inheritance will go to the government.

[mozarky2]

I've always referred to her as "Blank" Lincoln...

[Wuli]

One of the big, high-profile billionaire supporters in favor of the estate tax is Warren Buffet; that the LameStreamMedia loudly and proudly reports to everyone.

And what is the core of Buffet's corporate empire? Insurance. And what is one of the insurance products his companies have been developing and promoting - estate insurance to "protect" those families who can lose a giant chunk from estate taxes.

Scratch a liberal and you find a hypocrite every time.

[ReleaseTheHounds]

Good points, Wuli... And do you think Warren Buffet hasn't taken steps to put his fortune into foundations, trusts, generation-skipping mechanisms, etc. etc. to avoid most of the inheritance tax? And how about Bill Gates and his Dad -- they are so magnanimous in their positions, having done the same thing to shelter Bill's wealth from inheritance tax. Drives me batty.

[Condor51]

I think the first time I became aware of how evil, and down right STOO-PID^™ the Estate Tax (Death Tax) is, is when old man Wrigley (Wrigley gum, Wrigley Field, Chicago Cubs) died.

The son, William Jr., couldn't afford the freaking tax so he had to sell the Cubs and Wrigley Field to pay the bill. That's how the Tribune Company became the owner - the dam Death Tax.

[Tom D.]

What Buffett and Gates have is stock in widely traded companies. That stock is liquid and can easily be converted to cash without destroying the underlying businesses. Where the Federal Estate Tax hits hardest is the family small business that is not publicly traded and often has to be sold off in part or in whole to get the liquidity to pay the necessary tax.

I submit that if Congress eliminated the Federal Estate Tax tomorrow that within a year, all of the loss of revenue would be made up in increased income tax revenue. People would put more of their money into useful enterprises rather than try to inefficiently spend money on ways to minimize the estate tax; the generation who made the money will keep it and operate it more efficiently than the next generation because the founders had to give chunks of the company to children who are not likely to be a good as the founder was in running it. In addition, the kids could keep a good business in the family rather than break it up to sell to pay the tax.

Not only is the Estate tax unfair, it is inefficient.

[stickywillie]

Arkansas has become a retirement haven. Blank must be up for re election, and she fishin' for the retiree's votes

[ReleaseTheHounds]

You're right... and Wrigley had to sell under duress and I think the total price was something like $26 million and that was "only" around 25 years ago as I recall.

Too bad the new owners never figured out what to do with the Cubbies...

[WOSG]

"Mr. Chait makes a good point"

Mr Chait is a Liberal who is a chastising a Democrat for walking away from the liberal plantation on a few issues.
He's a cheerleader for obstructionism and liberal group-think on the budget. To hi, tax cuts are evil and big government is good.

I think his column stinks.

[Wuli]

Your are absolutely right.

Yet, just to hit my point again, which was not the nature of Buffet's assets and how he can protect himself, but (1) how he advocates against repeal of the death taxes while his insurance companies stand to loose a nice lucrative little nitch of their business if those taxes are repealed. And (2) how the LameStreamMedia promotes Buffet's position as pure altruism of a billionaire whose estate pay so, so much in death taxes (not).

[Wuli]

You can too. While you are still alive and sane, incorporate as a partnership, put all your family assets into the corporation and name all family members as co-equal partners. There is no "inheritance" of the corporation, it continues to be held by the partners. Or put everything in a living trust.

[pigdog]

And the really sad thing is that most if not all of these trusts, foundations, insurance schemes, etc. represent a costly, unnecessary drain on the resources and wealth of this country which could be more beneficially used.

The FairTax would make these sorts of inefficiencies unnecessary since it would eliminate the estate tax, the income tax, gift taxes and would greatly expand the economy to boot.

It's time for the FairTax!!!

[nickcarraway]

I don't think the same standard is held to Dems who switch. Besides, you'd have to look at the direction they were heading.

[pigdog]

Extremely inefficient (and costly - perhaps costing so much that no net revenue is gained). Over and above that, though, even with Buffet and Gates their being FORCED to liquidate assets would be a government-forced disposal of assets which AFAIC violates the 4th amendment if not others. At the very least is isn't a proper function of government and is not required for revenue raising when there is a substantially better way.

It's time for the FairTax!!!