Since its inception in 1916, the estate tax, also known as the inheritance tax or the death tax, has made it very difficult for a large number of Americans to reach certain thresholds of wealth without having to limit the size of their companies, estates, or farms, in order to avoid the tax. In many cases, Americans have had to sell their hard-earned assets, in order to pay the onerous tax, which has sometimes seized more than half of one’s assets at the time of death.

Proponents of the estate tax claim that repealing it would undermine meritocracy and promote an aristocracy of wealth. They argue that our society ought to encourage equality of opportunity, and that there can be no equality of opportunity, if some people are allowed to start out with immense financial advantages.

But those arguments represent the height of hypocrisy. America’s ruling elitists owe their immense fortunes and lavish lifestyles to the current system, which for decades has been rigged so that the super-rich can stash their fortunes in tax-exempt foundations and maintain their wealth and power, while their camp followers in the nation’s cultural, academic, media, and government circles share in the spoils through foundation grants. Meanwhile, small-business entrepreneurs and the middle class continue to shoulder the burden of the estate tax.

The practical impact of the estate tax has been to consolidate mid-sized, individually owned companies into huge corporate conglomerates. History has shown that most mid-sized companies simply cannot remain in business after the estate tax seizes half the company’s capital.

For example, the James O. Welch Candy Co. was sold to Nabisco in 1962, because Mr. Welch faced inheritance tax obligations that would affect the continuation of the company at the time of his death. The decision to sell the company was made explicitly because the inheritance tax would adversely affect the jobs of the 5,000 people who were working there.

Repeal of the estate tax would especially benefit family farms and small businesses, which are the backbone of the American economy. Fortunately, a bill has been introduced in Congress to permanently repeal the estate tax.

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