Wednesday, March 24, 2010
Estate Tax Limbo- A Political View
Welcome back. In continuation of our conversation from last week, I wanted to touch on the politics surrounding this issue, and what better time than after the healthcare bill has finally been voted upon. Now Congress will have time to focus their attention on other matters, maybe even the estate tax (I am also laughing at this proposition).
So looking at both sides of the political spectrum you have the Democrats having incentive to do nothing since this law (discussed in last week’s blawg) was passed by a Republican Congress and signed by a Republican President, hence they have no responsibility for the insanity caused by the sunset. They will point the finger at the Republicans and say this all their doing.
The Republicans have no incentive to do anything because their position has always been the repeal of the estate tax because it saves the American people money, and saving the American people money always resonates. The Republicans will point the finger at the Democrats and say they had the opportunity to save the American people money by the complete repeal of the estate tax but choose not to.
The thing is that both the Democrats and Republicans know full and well that the estate tax “sun setting” back to a $1 Million exemption and a 55% tax rate will greatly increase revenue, something badly needed.
In what will be a significant mid-term election, many in Congress will likely use their position on the estate tax in an attempt to ensure reelection. There is the key word, “reelection”. You cannot blame a politician from wanting to be reelected, it is after all his or her job, and nobody wants to be out of work, but why does there always have to be all the finger pointing. Why can’t they just state their position, why they believe in their position and let the voters decide whom they agree with?
I have a theory. If anyone has ever seen the movie “Animal House”, there is a very funny scene when a young man has a difficult decision to make and a little angel and devil appear and give him advice. With politicians, I actually think there is a third character involved, the grim reaper. He is there to only give advice on how to save the politician’s job. You can picture it, can’t you? The politician trying to decide what he is going to say, and there on his shoulder is a little reaper whispering in his ear, “point the finger or your career is over.”
Who knows what is going to happen, but it will definitely be interesting to watch. Please share your thoughts and questions and we will be happy to address.
Jason Salinardi
BridgeBuilder- Plans for Life