April 2001

Letter to the Editor

I was flabbergasted by the outrageous article in the December issue of The Trusted Professional concerning the November 15th talk of Congresswoman Nita Lowey. As a publication of our society, we have a responsibility not to simply report as fact the distortions of a representative who has voted against tax equity, tax simplification, and the interests of her New York constituents on virtually every tax vote taken in Congress.

The article quoted Lowey as charging named Republican members of Congress as “irresponsible” for proposals to repeal the death tax and reduce the marriage penalty, because they would be “financially risky.” But Ms. Lowey has voted for every tax increase and against any tax reductions and has proposed nothing in her entire stint in Congress that would have reduced the tax burden that falls inequitably harshly on her own constituents. In particular, she has failed New Yorkers in the areas of alternative minimum tax phaseouts, simplification, floors based upon gross income, and the marriage penalty, all of which are grossly unfair and fall disproportionately on her constituents. She has voted against the best tax interest of New Yorkers on every vote, and our publication allows her to shirk this off as the fault of the Republicans.

Specifically with regard to estate tax, Ms. Lowey’s accusations are particularly disingenuous. The amounts raised by the estate tax is and has been very minor. However, because of burgeoning wealth in recent years, this tax is projected to produce a major windfall in the years ahead. To the extent it can be viewed as a tax, it falls very disproportionately on taxpayers, with virtually all the tax paid by very few individuals. It taxes income that for the most part has already been taxed. It rewards consumption and punishes saving and investment. And as accountants, we know that the estate tax is simply a wealth redistribution—and from New Yorkers to the rest of the country at that.

The article goes on to quote members of the Estate Planning committee as being fully supportive of her positions. This is hard to believe, though I think that it would be a good idea for the NYSSCPA to foster discussion on this issue among its members. And the Society should have a position.