By [Congressman] Joe Pitts, Guest Columnist
DAILY LOCAL NEWS: One of Sweden’s most profitable exports in recent decades has been IKEA, the furniture and home goods retailer. IKEA stores have spread to 39 countries and customers will travel hours to reach the nearest store. Their stylish but inexpensive products have made IKEA one of the world’s most recognizable brands.
But technically IKEA isn’t Swedish anymore. Because of especially high estate taxes, IKEA moved its headquarters to the Netherlands. After losing one of its premier brands, the Swedish government repealed the tax in 2004. Since that time, it’s estimated that over 4,000 wealthy Swedes have returned to live — and pay taxes — in their native country. Unfortunately, IKEA still won’t be moving back in…
Before 2001, the government taxed the transfer of an estate worth more than $1 million at a 55 percent rate. Handing down a business or family farm to a son or daughter required extensive estate planning to ensure that property or equipment did not have to be sold to pay the tax. However, the sudden death of a business owner could be devastating. (more)
What is the average income level of people who are affected by the “estate tax”?
How would this lost revenue be made up? By increasing the income tax on everyone else?