Buffett is wrong about the estate tax

Most of us, including myself, will never be affected by any federal estate tax sometimes called the death tax. However, Warren Buffett was off the mark, as reported in the Nov. 2 Daily Herald article, "Buffett says tax him more".

The estate tax exemption increases through 2010 and then in 2011 reverts to the old system of $1 million exemption for estates and a top tax rate of 55 percent. In encouraging Congress to keep the estate tax Buffett says the feds should "..take ..more out of the hides of guys like me."

First, in other news venues it has come out that much of his fortune will be dropped into a charity run through Bill Gates, the world's richest man. Therefore, I surmise the estate tax will not effect his estate very much.

Next, he believes in "..keeping equality of opportunity as much as you can in this country."

There is no evidence that sending money, estate or otherwise, will guarantee opportunity.

Moreover, I suggest the following: if you are in favor of the estate tax, you must assume at least the following two things: 1) it is always a good idea to send money to the federal government. 2) the money from any federal estate tax will go toward categories that are a concern for me (you).

Well, no! That money will go into the general fund box and disappear in about one week.

How many other lifetime events will be found taxable in the future? The government is always looking for new tax sources but the estate tax should not be one of them.

Jack Donohue

Lombard