April 13, 2005

Paris Hilton Protection Act

One benifit of the wastland that is "realitiy" television is that people opposed to the elimination of the estate tax have a perfect poster child. Not giving Paris Hilton a tax cut is the new favorite argument against this amazing bad tax cut. Everybody is using it. I recomend E. J. Dionne:

In a little-noticed estimate confirmed by his office yesterday, Stephen Goss, the highly respected Social Security actuary, has studied how much of the Social Security financing gap could be filled by a reformed estate tax. What would happen if, instead of repealing the tax, Congress left it in place at a 45 percent rate, and only on fortunes that exceeded $3.5 million -- which would be $7 million for couples? That, by the way, is well below where the estate tax stood when President Bush took office and would eliminate more than 99 percent of estates from the tax. It reflects the substantial reduction that would take effect in 2009 under Bush's tax plan.

According to Goss, a tax at that level would cover one-quarter of the 75-year Social Security shortfall. The Congressional Budget Office has a more modest estimate of the shortfall. Applying Goss's numbers means that if CBO is right, the reformed estate tax would cover one-half of the Social Security shortfall.

And Political Animal:

I actually understand the gut appeal of estate tax repeal. After all, when you die don't you want to decide who gets your money? And yet, Democrats' inability to make the counterargument stick is telling. The only thing being taxed is estates of robber baron size; the only people being taxed are the pampered children of the robber barons; and the cost of repeal is on the order of $1 trillion per decade. Apply that to Social Security and the system would still be solvent when Captain Kirk retired.

So a few thousand indolent kids like Paris Hilton get to pay for their Roman bacchanalias tax free while a couple hundred million ordinary working folks get the shaft. That's the party of moral values for you.

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