Tuesday, June 07, 2005

False Tax Facts

The folks over at FactCheck.org take issue with an ad for full repeal of the estate tax. The American Family Business Institute and Free Enterprise Fund launched the ads in swing states to pressure Senators.

The ad claims the estate tax could cripple "your family." Thing is, less than 3% of deceased adults in 2002 had estates subject to the tax.

The ad focuses on family farms and businesses. But they point out that only 440 taxable estates were primarily farm or business assets last year. And of those -- two in five paid an average rate of only 1.6%.

Those were estates worth $2 million or less.

Estates valued at over $20 million paid just over 22% on average.

The FactCheck.org release features a chart from the Tax Policy Center showing how much estates paid on the so-called "death tax." It doesn't look like many millionaire heirs were hurting for money after paying for the funeral. (FactCheck.org)

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