On New Year's Day the estate tax, an essential part of the U.S. tax system for nearly 100 years, will disappear because Congress failed to act in December. Congressional leaders now are pledging to act in early 2010 to reinstate the federal estate tax retroactive to Jan. 1. In the meantime, rhetoric over the estate tax will heat up while Congress grapples with what to do now.
This crazy situation is the result of the Bush tax cuts for the super-rich, tax cuts that were supposed to lead to “trickle-down” prosperity for the rest of us. What we have seen instead is stagnation of wages for most Americans, while those at the very top have become extraordinarily rich. In fact, disparities of wealth and income are now at the highest level since the Gilded Age just before the stock market crash of 1929.
With so much wealth in so few hands, our economy has begun to operate more like a casino, with high-risk speculation fueling boom-and-bust cycles that have wrecked communities across our country. The gilded yachts of the super-rich have left in their wake capsized rafts of the unemployed and whole communities drowning in foreclosures. That’s not what America should be about.
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