Wednesday, December 01, 2010

Surprise! Big Insurance Likes the Estate Tax!

The family farm v. Northwestern Mutual Life et al.

Guess who wins that battle?

A new report from a trade association representing family-owned businesses fighting against the estate tax says a giant life insurance lobby is a key force pushing against repeal of the estate tax as the tax creates demand for their insurance.

Generally, the insurance proceeds are used to pay the estate tax, assure liquidity of the farm/business, and/or to provide heirs with the cash to buy the farm/business from the estate of the deceased. So yah, the Equitables, NMLs, NYLifes, Thrivents, (et al) have a stake in this.

Then there's the Hypocritical Class:

Leading the charge for the life insurers is former Oklahoma Gov. Frank Keating, a Republican who fought to repeal the estate tax when in office.

What principles?

And there's good ol' Warren the Craven:

One of the most outspoken voices urging a higher estate tax, Warren Buffet, owns six life insurance companies, the report says.

Perhaps that explains his slobbering-love-letter to Obama.

HT: Jo

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