June 30, 2000

Death tax has stayed on the books far too long

Death taxes &emdash; more properly called estate taxes &emdash; suddenly are unpopular with the people who enact them.

The federal estate tax is up for repeal in the Congress. Now the Legislature and governor have raised the exempted amounts in Ohio.

The AP reports that after signing by Gov. Bob Taft, Ohio's estate tax will not apply to estates under $200,000 after January 2001 and those under $338,000 after January 2002.

In an era when elected officials seem to be on a mission to find new ways to tax, the newfound displeasure with a taxing method is welcome.

But what took them so long?

The estate tax, from the first billed as a tax aimed at the wealthy, always has affected the middle class more.

It hurts those who have worked all their lives to build up a business or farm &emdash; with almost all the assets in equipment, property or inventory. When the estate tax is levied on the total value, the business or farm must be sold to raise the cash to pay the tax.

In addition, the estate tax is levied on assets on which other taxes already have been paid.

Taft was right in saying that the increased exemption was a measure whose time had come.

Eliminating the tax would be an even better idea.