The AmericanFamily Business Foundation released a new study that outlines just how manyjobs the nation could gain by eliminating the federal estate tax. Washington state would stand to gain approximately 33,000 jobs.

The report, written by Douglas Holtz-Eakin and CameronSmith, finds that small business payrolls would increase by about 2.6 percent,if the federal estate tax – a tax levied on wealth accumulation at death – is allowedto expire permanently. The 2.6 percent increase in payroll would result in 1.5million jobs nationwide and 33,600 jobs in Washington state. This would improveour state’s unemployment rate by a full 1% (9.1% to 8.1%).

Getting rid of the estate tax in Washington state, whichhits estates greater than $2 million with rates from 10-19%, is not politicallyfeasible right now. The state still faces a multi-billion-budget shortfall andthe failure of Initiative 920 in 2006 will probably convince policymakers thatWashingtonians want the tax to stick around.

But even if there is no political will to extinguish thestate's estate tax, there is polling evidence that shows taxpayers want to see the federal version go away.

The Tax Foundation, in its “20009 Survey of U.S. Attitudeson Taxes, Government Spending and Wealth Distribution," finds that the estatetax is considered the least fair federal tax. It received a worse rating thanthe federal gas tax, federal income taxes, Social Security tax and others.

Their survey goes on to state that two-thirds (67 percent)of U.S. adults say they favor complete elimination of the federal estate tax,while only 17 percent oppose repeal and 16 percent are unsure. Interestingly,and probably naturally, about three-quarters of those in the 45-54 and 55 yearsand older subsets want an outright repeal.

Americans are an optimistic bunch. No matter our currentstation in life, I think many of us expect to finish up our professionalcareers as very successful people. Therefore, we all expect to save and investwisely enough so that we can retire in relative comfort (see Dream, American).Americans want to see the estate tax disappear because we all expect to have topay it one day – or rather, we expect our children to receive less from us andthe fruits of our labor because Uncle Sam had to get his cut of assets on whichwe previously paid taxes.

See the press release on the report.