The new brackets represent an overdue move toward a flatter tax system, a goal that should remain a top administration priority. This is a worthy beginning. Americans get more dollars to save or spend on individual and family priorities. While criticism has focused on tax cuts the wealthiest Americans will receive, the 10 percent bracket would provide large percentage cuts in the taxes of those who have small taxable incomes. But there is no incentive to save or invest if estate taxes threaten to dissipate the efforts.
Every dollar paid in death taxes is a dollar diverted from savings or investment.
But there is also the more compelling issue of fairness to be considered. Small family businesses are this economy's high-octane fuel, yet are among those hurt the most by the tax, which can exceed 55 percent under some circumstances. Through hard work, entrepreneurs have earned the right to be able to expect the fruits of their labor to be transferred to sons and daughters without fear that taxes will cripple a lifetime investment. The Bush plan wisely would gradually reduce the tax, eliminating it in 2009. This allows more young estates to grow.