The real cost of the estate tax
King at SCSU Scholars led me to a very interesting statistic; Richard Wagner of George Mason University estimated the cost (in 1993) of the death tax.
$640 billion over eight years, or eighty billion dollars annually. It’s probably safe to assume that today’s cost is over one hundred billion dollars annually in expenses businesses incur to shield their estates from the death tax.
In contrast, estate tax revenue is only about twenty-five billion dollars annually. It therefore has a dubious distinction; with a cost/revenue ratio of four or so, it is one of very few taxes to be less efficient at gaining revenue than the income tax, which costs about 30 to 50 cents in complicance costs for each dollar of revenue.
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