Inheritance Tax USA Debate

About Inheritance Tax USA Debate

The US estate tax, nicknamed the death tax by opponents, has been politically contentious since its introduction in 1916. The tax affects only the wealthiest 0.1 percent of estates. Despite this, opposition is broad. Frank Luntz, a Republican strategist, coined the phrase death tax to generate opposition. The phrase was remarkably effective. Polls show that over 50 percent of Americans support repealing the estate tax, even though over 99 percent will never pay it. The tax was temporarily repealed in 2010 under the Bush tax cuts. Senator Bernie Sanders and others have proposed strengthening the estate tax. The debate is fundamentally about meritocracy versus wealth concentration. Critics argue the tax destroys family farms and businesses, though examples are rare. Proponents argue it prevents aristocratic wealth concentration.