Wealthy Families Fight Estate Tax—for 71.6 Billion Good Reasons

by Donna Jablonski, Apr 27, 2006

Eighteen extremely wealthy families have been quietly financing the campaign to repeal the federal estate tax, says Think Progress, citing a new report by Public Citizen and United for a Fair Economy.

With good reason: The families—including, of course, the clan behind Wal-Mart—stand to save $71.6 billion if the tax is repealed.

According to the report:

[These families] have relied on their fortunes, the resources of their companies and their business connections to marshal a massive anti-estate tax juggernaut that has reported nearly a half-billion dollars in lobbying expenses ($490.3 million) since 1998.

The families also have helped finance outside groups that have spent millions on fear-mongering ad campaigns intended to sway public opinion against the estate tax….[They] have also used their inordinate wealth to make enormous political contributions to influence elections and to help open doors on Capitol Hill….Members of the super-wealthy families have also helped finance political campaigns by serving as top fundraisers for President Bush….Bush, in turn, has adopted the talking points of the repeal advocates.

Altogether, the report says, the families and their corporate political action committees (PACs) have contributed at least $27.7 million to candidates and PACs such as 527 organizations.

In 2001, Congress voted to increase the estate tax exemption from $675,000 to $3.5 million then eliminate it completely in 2010. The House has passed and the Senate will vote shortly on legislation to repeal the estate tax permanently.

Contrary to claims by the anti-estate tax crew that the tax harms small businesses, family farms and regular folks, “only about one-quarter of 1 percent of all estates will owe any estate taxes in 2006.”

Repealing the estate tax really is nothing more than a handout at the expense of hard-working taxpayers to the extremely rich who have inherited vast sums.

The families bankrolling the anti-estate tax fight—by the way, they have a collective net worth of at least $185.5 billion, the report says—are:

• The owners of the country’s largest and third largest private companies, Koch Industries Inc. and Mars (candy) Inc.;
• The Walton family, which owns more than 40 percent of Wal-Mart shares;
• The Gallo (wine) family;
• And the families behind The Seattle Times Co. and the media company Cox Enterprises Inc.

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