I'm Pete du Pont with the National Center for Policy Analysis. The liberal nashing over House passage of the Death Tax repeal is worth a comment. In fact, even my last defense of the repeal wasn't accurate.
I called the Death Tax double taxation. But for some it's a three- or even a four-time hit.
Think about it this way:
You work hard to earn wages — on which you pay taxes.
Then, if you buy stock with what's left — and when it pays dividends, the Feds tax profits at rates up to 35 percent.
Then, if that stock appreciates in value and you sell it, you have to pay taxes on your capital gain — a third layer of taxation on profits already subject to double taxation.
Now suppose you build up an investment portfolio worth $1 million before you die – and you're taxed one last time for anything over $675,000. That sounds like a decent amount of money, but is it right to tax it a fourth time?
Those are my ideas, and at the NCPA we know ideas can change the world. I'm Pete du Pont. Next time, ditching the ABA.