The federal government will “inherit” enough to pay off the national debt, fund the social security deficit and have a huge surplus in about 20 years if it does not drastically change the estate tax; something it has no evident intention of doing.
I’m sorry, this doesn’t make any sense. Right now, the estate tax has a $2,000,000 exemption ($4,000,000 per couple). So it potentially effects about 1/2 of 1% of the population. In 2009, the exemption is set to go up to $3,500,000 ($7,000,000 per couple), so it will then apply to about 2-3 people out of every 1000 (.03% of the population).
With current tax laws, the effective tax rate over the exemption ends up being about 20-22%, which is not chump change, but it isn’t as grossly unfair as it might seem. Many (most?) estates are like ours, with the tax applying largely to previously unrealized capitol gains.
If we were to elliminate the estate tax, it might cost something like $2 trillion dollars in lost revenue (say $1.6 trillion in direct revenue, and another .$400B in additional interest on the national debt), over the next 20 years, but it is impossible that it will generate an additional $9 trillion in revenue. So it couldn’t pay the deficit now, let alone todays amount + interest + 20 x the $400B per year structural defict that the Bush administration is proposing.
Someone has been pulling your leg.