Death Is Certain, but Must Estate Tax Be Too?
I believe the repeal of the estate tax would be a big mistake [“Estate Tax’s Disappointing Legacy Invites Repeal,” James Flanigan, June 20].
If the inheritance tax has not accomplished a redistribution of wealth, a repeal would only make matters worse. The fact that the Internet billionaires could pass their huge fortunes down to the next 10 generations would create a large class of idle rich, which would not be beneficial to society.
Even worse, it would discourage the creation of charitable foundations by those of great wealth, which would have a major detrimental effect on our existing charitable and nonprofit institutions.
The best solution is to retain the tax but raise the exemption. The current exemption of $650,000 is far too low and penalizes the thrifty middle class. It should be raised to $5 million to $10 million to protect family businesses.
GARY A. ROBB
Los Feliz
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* After reading the article on the possible repeal of the estate tax, I wanted to go out and celebrate. It’s about time. I am not a small-business owner but a retiree who worked hard for 38 years to accumulate enough money to retire comfortably and to leave to my children something to make their lives a bit easier than mine.
I paid my taxes like a good citizen and naturally what was left was mine. Right! No, wrong. The government comes along and says that after I’m dead it is going to take a good chunk of the money I have left for my children.
It’s a real cute idea to tax the dead: They can’t do anything about it.
DON SCHARY
Sherman Oaks
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* How nice to know that all those fortunate individuals who have amassed estates worth millions of dollars may not have to face the bite of the tax man. Meanwhile, the little guy whose only savings is a small IRA must pay regular income taxes on any withdrawals.
How about a break for those of us who are not affluent, such as a law granting tax-free withdrawals up to a limit of, say, $250,000 in our IRAs?
DR. ROGER GILMORE
Topanga
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* I personally am in favor of the repeal because a tax on inherited wealth is a violation of the American way. To tax someone for having invested wisely is neither just or fair.
However, putting that aside, we will never see a repeal because of the insurance industry lobby. Have you considered the impact on that industry if there were a repeal of the estate tax? Read the ongoing ads by Barry Kaye and individuals such as him, and you can readily see that the death tax will never be repealed. The insurance industry would never stand for it.
DON LEVE
West Los Angeles
