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June
10, 2000
Porsche Is To Blame
My business partner always gives me a summary of the week's economic indicators
on Friday, with a few salient comments noted. The great news last week, of course,
was that there was no increase in the Producer Price Index. However, the core
PPI, which excludes food and energy, rose 0.2%, "Due to increase in autos. This
is probably because I bought my car. Who would've thought the core rate would
do that? Must be due to my irrational exuberance." Nice to know that one sportscar
fanatic can move the economy. The core PPI is growing at a 1.5% annual rate,
the same as last year. Import prices rose a nasty 0.6%, but it was all due to
energy, so no signs of inflation are around. But the Fed Governors are still
looking under every statistic, believe me.
The vigilant protectors of American consumers at the Justice Department have
been joined by the House of Representatives. They've voted to abolish the Evil
Death Tax. The American electorate has been duped. Ten years ago, how many people
knew estate taxes even existed? I mean, who has an "estate"? Some rich guy who
goes fox hunting. But call it the "death tax," and people are up in arms. After
all, we all die.
Shame on Congress! Fewer than 2% of descendants owe any estate taxes at all.
This year, the first $675,000 of an individual's net estate is exempt from taxes.
That's scheduled to rise to $1,000,000 by 2006. A married couple will be able
to shelter $2,000,000. You can make a case for raising the exemption, cutting
rates, and/or giving additional breaks for family farms and small businesses.
But abolishing estate taxes? Come on. As much as I disagree with Judge Jackson
about Microsoft, I do think that Bill Gates' estate should pay those evil death
taxes when he goes to the ultimate cyberspace.
FOR OTHER INSTALLMENTS OF ERICA'S COLUMN
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