By CONSAD Research Corporation
June 30, 2003


CONSAD Research Corporation has developed a computer model for estimating the changes in government revenues that will occur under proposals that, first, repeal the estate tax and, second, limit the degree to which a step-up in the basis for measuring taxable capital gains can be applied to the value of assets in estates.

The analysis performed using that model indicates that there are several adaptations of economic behavior in response to such a change in tax structure that would offset most, if not all, of the revenues forgone by the repeal of the estate tax.

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