As Desirable As It May Be To Many Of Our Clients, Polls Show that Estate Tax Repeal is Not A Priority for Small Business or the American Public. This Means That Even Some Republican In Congress Will Conclude That It’s Not Good Politics – One More Reason That Clients Are Not Well Advised To Interrupt Their Planning.
Currently, estate tax speculation is confined to those most impacted by it. This will change if the issue is turned into a debate on the Senate floor and in the public view.
A recent Wall Street Journal poll revealed that only 3% of small businesses see estate tax repeal as a high priority.
A recent University of Maryland poll showed that 78% of voters support current estate tax law or lower exemptions/higher rates.
President Trump won the election in large part due to higher than expected support from working class voters in places like Wisconsin, Ohio, Pennsylvania, and Michigan.
Repealing the estate tax is very regressive tax policy that benefits the wealthiest 0.2% of estates in the country. Such a move could be construed as politically ‘tone-deaf’ given the increasing amount of wealth inequality and drop in income for major parts of the “Trump Coalition.” Trump won in places like blue collar, Democratic Northampton County, PA and lost in places like Greenwich, CT. In a remarkable turn-around for a Republican, Trump and Clinton essentially split voters earning less than $50,000 annually.
Estate tax repeal presents Republicans with a series of uncomfortable policy choices that may not equal the perceived benefit of repeal, and ultimately end up hurting more taxpayers in the case of an estate tax with a less generous exemption and rate being enacted by a future Congress hungry for revenue.