The New Economy has boosted the black middle class and seen more racial minorities and women join the entrepreneurial ranks. For many it is their families' first opportunity to accumulate genuine wealth. They see the death tax as a threat to that financial security and legacy building. Indeed, that's exactly why the National Black Chamber of Commerce supports repealing the estate tax. Plus, the revenue is almost offset by administrative and compliance costs, which Congress ' Joint Economic Committee has estimated to consume at least 65 percent of the tax.
Some economists believe the tax actually loses money.
And the Democratic leadership last week offered to raise the threshold even more, further shrinking the revenue base. The truth is the very rich can afford to find ways to avoid the full brunt of taxation. That's why such narrowly targeted taxes always fail to raise projected revenues. Stripped of its class-warfare trappings, the estate tax is little more than a government disincentive to save and invest. It deserves to die.