Even if Bush's larger package gets derailed, congressional observers say, the stand-alone estate tax measure will almost certainly go through. Abolishing the tax would allow even the wealthiest families to inherit tax-free. Supporters of the repeal say it will help the owners of family farms and businesses. Family farmers say estate taxes make it very hard to pass on their farms and ranches from generation to generation. Tanner says the tax unfairly punishes successful entrepreneurs.
Opponents disagree, saying the repeal is really a giveaway to the rich.
They argue that family farms and businesses account for a tiny proportion of those who will benefit, and that current law contains special tax breaks for them anyway. That's just 2,400 families, the heirs of the wealthiest one in 1,000 Americans who died that year, the Center on Budget and Policy Priorities found. Critics also say charities will lose out, since wealthy taxpayers will no longer have any tax incentive to give away their money when they die. The table shows a breakdown of estates that were subject to federal estate tax in 1997. The effective rate is the taxes paid as a percentage of the value of the estates.