John Block Reports from Washington

Congress is gearing up to take another crack at getting rid of the death tax. The House has passed it already. The Senate is working on a compromise.

None of us like taxes, but I can't think of another tax that is as counter productive, unfair, and just plain mean spirited as the death tax.

Family businesses in the country are the engine that drives our success. A tax of more than 50 percent on the assets of a family business can often force the sale of the business. Who wants to borrow all of that money to pay the tax?

My father, my partner in farming for 30 years, died eight years ago, but to keep the family farm together, I had to buy-out my sisters because they were heirs. And, that was okay. But, also, my father's estate had to pay federal inheritance tax. I am still working to pay that off. Now, you can tell that rhave a personal bone to pick with the death tax. When I am gone will my son have to go through the same costly process? I hope not.

Farmers are not alone. I work for the Food Marketing Institute and we have family members that own independent supermarkets. Some of them are selling their business to the big chains because they don't want their family to face Uncle Sam's tax collectors when they are gone. Remember they already paid taxes when they earned the money. The death tax is double taxation.

Keep in mind most of these small businesses are very capital intensive. There isn't any cash lying around. It's all invested in real estate and machinery.

If the tax was efficient and brought in a lot of money there might be an argument. But, it isn't. Most economists estimate that the cost of complying is as great as the $23 billion dollars raised.

The death tax is bad policy, and this is the year to kill it.

Until next week, I am John Block from Washington.