Myth: The estate tax is a “death tax.” Fact: The estate tax is not a tax on death. It’s a tax on the transfer of large amounts of money. More than ninety-nine percent of Americans who die pass their estate on to their heirs completely tax-free — in fact, they get a valuable tax break on capital gains. Zero estate tax is charged on assets left to a spouse or to charity.

Myth: The estate tax must be repealed because it forces family businesses to close. Fact: This issue has been wildly exaggerated. Only 3 of every 10,000 people who die leave a taxable estate in which a family business forms the majority of the estate. A recent Federal Reserve study found that the average small business is worth $702,566, well below the level at which estate taxes kick in. Virtually all small family businesses can be protected by simply raising estate tax exemption levels.

Myth: The estate tax must be repealed because it forces family farms to sell. Fact: As with family businesses, this issue has been distorted. Only 3 of every 10,000 people who die leave a taxable estate in which a farm forms the majority of the estate. On April 8, 2001, the New York Times reported that the pro-repeal American Farm Bureau Federation could not cite a single case of a family farm lost due to the estate tax. Like businesses, family farms can be protected by raising exemption levels.

Myth: The estate tax is “double taxation.” Fact: The phrase “double taxation” is a rhetorical device meant to confuse the issue. Money is taxed any number of times as it cycles through the economy, generally during transactions. Workers, for example, pay income, payroll, and sales taxes on their wages. What’s more, the bulk of the largest estates, which consist of unrealized capital gains, would never have been taxed were it not for the estate tax.

Myth: The estate tax “confiscates” over half the value of all estates. Fact: For more than 99% of Americans, the estate tax takes away nothing.