Pundits of every political persuasion decry corporate lobbying in Washington, and a major tax bill is a great opportunity for businesses to gain benefits if they convince members of Congress to help them out. However, battles over tax provisions are sometimes not what they appear on the surface.
For years, liberal pundits have characterized efforts to repeal the estate, or death, tax as the plutocrats pulling the levers of power on the Republican side of the aisle. But a new investigative piece at Daily Caller by Richard Pollock exposes the lobbying that is undermining good policy on estate taxation.
I favor estate tax repeal, for numerous reasons, as I laid out here. One reason is the large waste of resources spent on paperwork and avoidance. I noted:
The estate tax is probably the most inefficient tax in America. It has a high marginal rate and is very difficult for the government to administer and enforce. It has also created a large and wasteful estate planning and avoidance industry. The industry overflows with high-paid lawyers and accountants doing paperwork, litigation, asset appraisals, and creating financial structures to minimize the tax burden using trusts, life insurance, and private foundations.