Saying happy 100th birthday to our estate tax may not give you reason to celebrate but it does demonstrate the longevity of some of our tax laws. The estate tax has been and continues to be controversial undergoing many changes throughout the years. It seems that the Presidential candidates for 2016 will be discussing this century old federal tax provision.
Once a tax becomes a century old, it might seem reasonable to assume that everyone agrees that it is a good thing. However, that is certainly not true of the estate tax.
Its existence is likely to play a role in the 2016 Presidential election, just as it has in every recent Presidential election. Republicans continue to call for the abolition of the estate tax, while Democrats ask that it be strengthened.
The two sides could not be further apart on the issue.
Republicans believe the tax hinders small business and family farmers, while Democrats believe the tax is important for revenue and to mitigate wealth inequality.
Forbes reported on the estate tax’s birthday in a recent article, “Estate Tax Hits 100th Birthday And Paul Carron Calls For Many Happy Returns.”
Whatever your own thoughts are on the estate tax, it might be worthwhile to reflect on what it means that it has been with us for 100 years. It could mean that once a law is in place, even a bad law, that it is very difficult to get rid of it. It could also mean that the estate tax has become an integral part of our society.
The two ideas are not mutually exclusive.
It is possible that in another hundred years, Americans will still be debating over the estate tax and whether it should exist at all. We do know that this is an issue that is unlikely to be resolved anytime soon.
Reference: Forbes (September 15, 2015) “Estate Tax Hits 100th Birthday And Paul Carron Calls For Many Happy Returns.”