| "At the death of our founder," says W. J. | | | | value less than $1,500,000 would not pay a |
| Grundy, the former chairman of Jomac, Inc., a | | | | federal estate tax and most likely would not |
| Pennsylvania manufacturer of protective | | | | have to file a federal estate tax return. The |
| gloves, "we spent over $3 million to redeem | | | | applicable exclusion amount increases to |
| stock so estate taxes could be paid and | | | | $2,000,000 for decedents dying in the years |
| control of the company could be maintained. | | | | 2006, 2007 and 2008. The amount increases to |
| This was $3 million not available for | | | | $3,500,000 for 2009. According to the |
| operations and the division in trouble was | | | | Economic Growth and Tax Relief Reconciliation |
| sold -- reducing our employment by about 30 | | | | Act of 2001, the federal estate tax |
| employees and our sales by about $5 | | | | disappears for the year 2010, but the tax |
| million."(Boston Globe, June 15, 2000) The | | | | returns in 2011 at the 2001 level when the |
| Center for the Study of Taxation found that | | | | temporary repeal expires. As an extra tax |
| three out of four families faced with | | | | applied to income that has already been |
| liquidating all or part of their business to | | | | drained by decades of other taxes, it is one |
| pay the estate tax would have to cut their | | | | of the most loathsome pieces of looting in |
| payroll in the process. Studies by the | | | | the federal tax code. Put simply, it is |
| Institute for Policy Innovation (IPI) and | | | | double taxation on a working person's |
| Congress's own Joint Economic Committee have | | | | lifetime wages. The federal government cashes |
| found that the estate tax costs communities | | | | in on a wealthy person's death by looting his |
| more in lost jobs and lower economic growth | | | | or her assets with a tax on a whole lifetime |
| than it raises for the U.S. Treasury (William | | | | of work. Fortunately, opponents of the estate |
| W, Beach, The Heritage Foundation). The very | | | | tax are struggling to make repeal permanent, |
| same thing can happen right here in the | | | | but face stiff opposition from the usual |
| Valley.The estate tax (or "death tax" as it | | | | suspects in the Senate. The House has already |
| has become known, though perhaps wrongly so) | | | | voted to permanently repeal it. A senate |
| is a tax on inherited wealth and can amount | | | | compromise could be a likely result, though |
| to more than 50% of one's estate. For a | | | | an unsatisfactory one. Our own U. S. |
| person dying during 2005, an estate with a | | | | |