"The proposal would benefit only a tiny number of estates but carry a large cost. Only the estates of 2.8 of every 1,000 people who die would benefit from the Lincoln-Kyl proposal; Tax Policy Center data show that those are the only estates that would owe any estate tax in 2011 if the 2009 estate rules are extended. Yet the proposal would cost $91 billion more in the first ten years that its effects would be fully felt (2012-2021) than would making the 2009 rules permanent, based on Joint Tax Committee estimates. Relative to current law, under which the tax will revert to pre-2001 parameters in 2011, the total cost of the Lincoln-Kyl proposal would be $442 billion over this 2012-2021 period.
These new cost estimates are lower than last year’s estimates for a similar proposal, probably because of the sharp drop in the stock market, real estate values, and other asset values. But over time, as asset prices recover, the long-term cost projections of the proposal would also increase — and by quite substantial amounts."
"In good and bad economic times, most Arkansas families know they must live within their means. They try to balance their checkbook every week, pay their bills on time, and, hopefully, are able to put a little away for retirement and their children’s college fund. From time to time, though, even those who plan ahead and make prudent saving decisions may face a household emergency that requires them to seek a loan or use a credit line to help them through a rough period. When that happens, they know they must tighten their belt and make sacrifices to make those payments and eliminate their debt. If the working families of Arkansas must do this, why shouldn’t their government do the same?"