GOP legislators eye repeal of estate tax

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RICHMOND -- Several Republican lawmakers want to resubmit plans that would repeal the state's death tax during the General Assembly session next year.

Many Republicans said the tax, formally known as the estate tax, should be eliminated because it is unfair. It is imposed posthumously on the estates of millionaires.

"The government says thanks for all your hard work and now let's take half of it away," said Delegate Jeffrey M. Frederick, Prince William Republican. "That's not right. It's squashing the American dream."

Mr. Frederick said the tax affects not only wealthy people, but also longtime homeowners and small-business owners.

Several lawmakers tried to do away with the tax during the session this year, but failed.

A proposal by the House last month eliminated the tax. But the Senate stripped the repeal from the tax-raising revenue plan partially because many felt it was unfair to the state's poorest residents.

Sen. Richard L. Saslaw, Fairfax Democrat, said last month that repealing the estate tax so that the state's wealthiest people have less of a tax burden was not equitable with raising the state sales tax, which would fall on the poorest people.

Delegate Robert Tata, Virginia Beach Republican, had included the repeal in a bill but that measure never materialized during budget negotiations.

Mr. Tata's bill passed the House 69-29 and was incorporated into the original Senate budget, which the House rejected.

Mr. Tata pledged to continue championing the bill.

"It's not going to go away. That thing will be introduced until it passes," he said.

Gov. Mark Warner, a Democrat, had offered a partial repeal of the estate tax in his plan.

His plan would have eliminated the tax for the first $10 million in value of any estate and completely for family-owned farms or small family businesses.

However, the plan was rejected by the legislature. The final revenue plan was crafted as"