McCain on Estate Tax
I don't ever like to give Robert Novak any attention, but his column from yesterday, if true, is most unfortunate. Novak writes that once the Senate takes up permanent repeal of the estate tax (which was supposed to happen this week but has been set aside so that more urgent matters can be dealt with), Senator McCain will vote for cloture.
I've already discussed my belief that repeal of the estate tax at this time would be the ultimate in fiscal irresponsibility [error corrected - thanks!] - and I stand by that statement. There is absolutely no justification at this time - none - for a tax cut that would cost the federal government $70 billion a year once fully implemented and that only benefits the top 1% of households. Any vote for cloture is an exercise in poor budgetary policy.
Thankfully, there is at least a somewhat bright side. McCain told Novak he's not supportive of repealing the estate tax ("I follow the course of a great Republican, Teddy Roosevelt, who talked about the malefactors of great wealth and gave us the estate tax. I oppose the rich passing on fortunes"), and will try to work with his Arizona colleague to devise a compromise measure. McCain suggested lowering the rate and raising the exemption level, which I have done as well. If a suitable compromise can be worked out, I think there's certainly a role for McCain in procuring one, and that would be excellent.
Novak writes that McCain's apparent support for cloture means that he understands the "political reality" that "he may get away with diverging from the Republican consensus on campaign finance reform, global warming and the highway and energy bills, but tax policy is another matter" (i.e. if McCain has a prayer of winning the primaries in '08 he must support demolishing every tax in sight). What this ignores is that there is no "Republican consensus" on any of those issues. Republicans supported and opposed campaign finance reform, global warming legislation, spending bills (and practically everything else) and Republicans ought to be as free as anyone to support or oppose tax policies they find fiscally dumb.
McCain should resist the litmus tests of the anti-tax crusaders who are trying to threaten him into compliance with their demands. It will be much easier to run in 2008 on a platform of fiscal responsibility than otherwise. I'm hopeful a) that the estate tax repeal will be increasingly unpalatable as the Katrina bill continues to come due and b) that if McCain must vote for cloture, he works hard to hammer out a compromise bill.
posted by JBD @ 9:34 AM
2 comments
2 Comments:
I have no idea why the anti-tax people are still screaming to have things done their way. We're billions in debt, we're paying for two war zones, and now we've got the largest natural disaster on our shores since Hurricane Andrew (as a Floridian, I can tell you we're still not fully recovered from THAT). How else are we going to pay for these things without the government getting an infux of money?
I know Grover's obsession with drowning things in bathtubs, but doesn't he see now that there are very good reasons to have a federal government?! Or at least a federal government that can actually do something rather than sit on their collective asses for almost a whole week!
This is entirely speculative. Taking McCain's point of "not having massive fortunes passed on to heirs, perpetuating an aristocracy," and combining that with a "people can spend their money more wisely than the government," I wonder if there is any way to, instead of tax great estates, enforce their wide distribution. A large part could be sent to non-profits, assuming there is a way to prevent bogus non-profits being set up to simply give money to the person's heirs.
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