I’ve been enjoying reading everyone’s additions to the unanswered questions about the future of labor (and, yes, some suggestions which are good, too). So, don’t stop…I’m on my way to Chicago tomorrow to speak before the Teamsters Black Caucus annual meeting (and to catch, by chance, the Yankees playing those hard-to-beat White Sox) but, while I’m out there, I’m going to try to post many of the questions for more discussion.

But, a curtain-raiser on something I’ll keep after in the next couple of weeks: this stupid repeal of the estate tax, which may come to a vote right after Labor Day. Yeah, that’s one thing the top one or two percent of society really needs–another tax break because they are really hurting. Here’s the skinny, though I imagine you may have picked up on this elsewhere:

When some really rich person croaks, their assets get transferred to their heirs, who–god forbid–have to pay taxes when the estate gets to a certain level (more on this in a moment). This tax hits only the wealthiest 2% of Americans. As the Coalition for America’s Priorities points out, “In 2001, over half of all estate taxes were paid by 3,502 people with estates larger than $5 million — representing the top 0.14% of all Americans.”

The estate tax stayed largely unchanged until 2001 when the current president took office. What’s truly amazing is that the estate tax is supposed to disappear by 2010 and, then, be reinstated in 2011–this is one of the gimmicks that were part of the Bush tax cuts.

But, you think that’s enough for the pigs at the trough? Nope–they want to completely repeal the estate tax. Forever.

It shows what a pickle we are in that the forces of light that are fighting complete repeal are suggesting a compromise that would raise the exempted estate tax to $3.5 million and $7 million for couples. Personally, I think that’s nonsense–if you can’t figure out how to survive on the current exempted $1.5 million exemption ($3 million for couples), I don’t have a whole lot of sympathy for you when half the rest of the world lives on $2 a day. But, it is the sad state of our political life that such concessions are on the table.

You’ll here a lot from the forces of evil (should I say “axis of evil”?) who will blather on about how repeal will save the family farm and prevent the heirs of farmers from losing their estates when their parents die. Bullshit.

As the good folks from OMB Watch point out, “According to a new report from the nonpartisan Congressional Budget Office, an incredibly tiny number of
family farms are actually impacted by the estate tax. The report found that if the current exemption level of $1.5
million per individual ($3 million for a couple) were in effect in 2000, then only 300 family farms would have
had to pay any estate taxes. The report further estimates the number of family farms impacted would have
dropped to a mere 65 farms nationwide with an exemption of $3.5 million ($7 million per couple), the level the
exemption will be in 2009. (Yes, the first $3.5 million of an estate – double it if married – is tax free.) This is yet
another piece of evidence that the rhetoric concerning the impact of the estate tax on family farms is just a myth.”

U.S. Action did an amazing chart (it’s in an Excel format) which shows us this: the $45 billion going back to the richest people in the country (if the repeal passed) could provide health insurance for more than 22 million children.

So, there’s the choice: more money for rich people or health coverage for children. To all the masses of people of faith, including those sanctimonious Senators like Rick Santorum and Bill First, I say: wonder what Jesus would say on that?

Keep an eye on this–we may have another CAFTA 15 situation here. The key vote after Labor Day will come when the Republicans try to end debate on the repeal and prevent a filibuster. All 55 Republicans will probably toe the line (though a few are not crazy about the repeal, they will walk the plank on stopping a filibuster). But, where the poor children of America may get screwed is with the Democratic Party–where a few of the “moderates” are very soft on holding the line. I’ll be outing them down the road.