Estate tax places burden on heirs

As part of the American dream, we all hope to lead fulfilling and fruitful lives. And when life ends, we pass our material possessions on to the people we love. \nBut for thousands of Americans, large portions of their savings are seized by the federal government through the estate tax.\nSometimes called the "death tax" by various partisan forces, the estate tax makes heirs give up part of their inheritance in federal taxes. It applies to property, equipment, savings and retirement accounts.\nFor the heirs of the wealthiest Americans, the tax bill can equal more than half their net inheritance. But it also hurts family businesses and farmers.\nIn Friday's IDS, U.S. Rep. John Hostetler (R-8th) called on President Bill Clinton to sign a Republican-sponsored bill abolishing the tax. Clinton has promised to veto the bill. \nThis is unfortunate. The estate tax bill, which will phase out the tax over 10 years at a cost of $10 billion, has passed the House and Senate with significant Democratic support. \nThat Democratic support includes many minority congressmen, who have argued that it sometimes takes several generations for black and Hispanic businesses to build wealth, which the tax undercuts.\nAnd while it's politically easy to attack the rich, this particular tax can have some unfortunate side effects. Hostetler cited statistics that show one-third of small business owners will have to sell some part of their firms to pay off the taxes.\nFamilies can have some protection from Uncle Sam under the current system. Many married couples enlist lawyers and accountants to set up schemes that can shield up to $675,000. But when it comes to family farms ' some with hundreds of acres of property ' that number isn't even close to protecting their legacy. \nDemocrats have proposed raising exemptions and reducing tax rates, but that method won't protect everyone. It encourages those who will manipulate the system with lawyers and accountants and places the larger burden on less tax-savvy Americans. The only way to ensure the next generation doesn't lose the family business is by eliminating the estate tax altogether. \nWith today's incredible budget surpluses, it seems an appropriate time to end something so inherently unfair to small businesses, family farmers and minorities. \nIt's time to put an end to the estate tax ' and let some American families rest in peace.