Estate Tax Myths: "Sunday, July 24, 2005; Page B06
ONE OF THE chief arguments of those seeking permanent repeal of the estate tax is that it cruelly penalizes farmers and owners of small businesses whose heirs are forced to sell off their holdings to pay the tax. 'In order to make sure our farms stay within our farming families, we need to get rid of the death tax once and for all,' President Bush proclaimed in a speech last month to the Future Farmers of America."
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A new study by the Congressional Budget Office examined estate tax returns filed by farmers and owners of small businesses in 1999 and 2000. The numbers that owed estate tax, the CBO found, were paltry, and the number without enough cash on hand to pay the bill even punier: In 2000, for example, just 1,659 farm estates had taxes due, of which 138 didn't report enough liquid assets to cover their tax liability. ... But members of Congress debating the issue now ought to look at the facts assembled by the CBO -- not the misinformation peddled by those maneuvering to make repeal permanent.
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