Public Citizen has generated a report (pdf) showing that 18 of America’s super wealthy families are primarily responsible for a lobbying effort to repeal America’s estate tax or “death tax” as Republican PR gurus and their devotees like to call it.
According to the press release by Public Citizen:
[The report] reveals how 18 families worth a total of $185.5 billion have financed and coordinated a 10-year effort to repeal the estate tax, a move that would collectively net them a windfall of $71.6 billion.
The report profiles the families and their businesses, which include the families behind Wal-Mart, Gallo wine, Campbell’s soup, and Mars Inc., maker of M&Ms. Collectively, the list includes the first- and third-largest privately held companies in the United States, the richest family in Alabama and the world’s largest retailer.
These families have sought to keep their activities anonymous by using associations to represent them and by forming a massive coalition of business and trade associations dedicated to pushing for estate tax repeal.
. . .
In a massive public relations campaign, the families have also misled the country by giving the mistaken impression that the estate tax affects most Americans. In particular, they have used small businesses and family farms as poster children for repeal, saying that the estate tax destroys both of these groups. But just more than 0.25% of all estates will owe any estate taxes in 2006. And the American Farm Bureau, a member of the anti-estate tax coalition, was unable when asked by The New York Times to cite a single example of a family being forced to sell its farm because of estate tax liability.
. . .
While they extol the hard work of individual farmers and small businesses, most of the 18 families have been wealthy for generations; only five still include the people who first earned the family fortune. Members of the families are far less likely than most Americans to have paid taxes on their wealth; to a large extent, that wealth lies in assets that have appreciated but, unlike paychecks, have never been taxed.
I have written about the estate tax in the past. Nobody likes paying taxes, and every tax contains elements that are unfair or particularly undesirable. But, I have never had anyone adequately provide a justification for eliminating the estate tax before eliminating the income tax. Whatever moral claim an heir has on the state of his father at the end of his life, it pales in comparison to the claim a worker has to his paycheck at the end of the week. So, whatever problems the estate tax has, there is little or no reason to address them while we still tax the paychecks of working people. Furthermore, extreme concentrations of wealth have pernicious effects on our democracy. I don’t have any serious problems with allowing individuals to amass ridiculous amounts of wealth based on their own luck and skill. But I don’t see any particular public good served by extreme levels of wealth in the hands of the children and grandchildren of those people. How many generations since John D. Rockefeller made his first billion? And we still have his progeny directly affecting our lives through their various prominent roles in our government. Skilled as those individuals may be, I would hazard a guess that they would not have attained their positions absence a pile of inherited wealth.