The New York Times editorial page takes a look at the loopy one-year repeal of the estate or “death” tax that will happen in 2010. The one-year repeal will result in smaller estates being taxed but estates that are worth millions not being taxed. Also, there is no — literally zero –  capital gains tax on inherited property, even if its value has increased by millions of dollars.  “The bottom line is this,” the Times opines. “there will be many more losers than winners under estate-tax repeal, and the losers will be among Americans who are farther down the wealth ladder.”

The one-year repeal of the estate tax is a legacy of the George W. Bush administration tax cuts that were completed during a budget surplus and Republican majorities in the House and Senate. I know tax reform is not quite the priority for Barack Obama that it was for Bush. But, according to the conventional wisdom, a top priority in 2010 for the Obama administration and the Democratically-controlled Congress is reducing the trillions dollar deficit. Undoing Bush’s tax cuts, especially for the rich, won’t come close to wiping out the deficit. But it would be a good start.

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