Repealing Tax Estate Law Would Hurt More People Than American Banker (08/18/00) Vol. 5, No. 17 p.12; Corey Jr., Stanley B.
Repealing the estate tax law is guaranteed to have
negative repercussions on the financial services industry and the
financial tools currently being used, according to Stanley B.
Corey Jr., writing for the American Banker. In the event that
the estate tax code is overhauled, Corey says, banks, insurance
companies, and securities brokerages would forever be altered,
and not for the best. Banks, for example, would be presented
with the question of what to do with revenue now generated from
insurance and securities, both of which banks recently began
marketing. Life insurance would face similar uncertainty. "How
much ... permanent life insurance is being written to create
funds to pay for estate taxes at the survivors death? How much
money is gifted to charities and younger generations to reduce
the taxable estate?" Corey asks. In the end, Corey says that
repealing the estate tax would be reckless.