By Jay Hottinger 

Who among us enjoys paying taxes? Most of us don't, but we also recognize that some level of taxation is necessary to live in a decent and civilized society. Many of us can probably relate to Will Rogers when he quipped, "I feel patriotic when I pay my taxes. Of course, I could feel just as patriotic paying half of what I pay." Ben Franklin once remarked, "Only two things in life are certain; death and taxes." While his observation is correct, the two shouldn't be in tandem.

There are many taxes I don't like, but clearly the most egregious tax is the one we pay when we die. The estate tax, inheritance tax or death tax are some of the common names of the revenue we give to our local, state and federal government when we die. Or more aptly, our heirs give to government upon our demise. Should your assets be taxed upon your death? This is one of the hotly debated questions right now in the Ohio House of Representatives.

Ohio is one of 25 states that have a death tax, and six of those are phasing it out. By 2010, Ohio will be one of 19 states that will continue to tax your death. We have the dubious distinction of having both the highest tax rate while also having the lowest threshold at $338,000. That means after you have worked hard for your entire life and accumulated assets, the government in Ohio feels you should be taxed again for that accumulation.

The federal death tax threshold is $2 million. Which means in most cases, Ohioans will pay an Ohio death tax, but no federal death tax. Keep in mind you already have paid taxes on these assets at least once, many times twice, and in some cases even three times. It is well past time Ohio lay the death tax to rest.

Ohio and Pennsylvania are the only states that return all or most of the death tax to the local government where the resident lived before their death. In our state, 80 percent of the tax goes to your local government while the state keeps 20 percent.

I strongly support a total elimination of this obscene tax, but in today's political climate it is not likely. In spite of this, we should at least pass House Bill 4, which would increase the threshold and index it to inflation for the future. The bill also would return 100 percent of the death tax to the local government.

The part of HB 4 I like best is the provision which would allow a city, village or township to vote to repeal the death tax. Some local governments want to keep this tax and others don't. It would certainly liven up many local races for council, township trustee and mayor.

This final provision would also allow local governments to use their policy as an economic development tool. Ohio needs people to stay here. Unfortunately, our average income is 10 percent below the national average. We rank 46th in personal income growth, 47th in job growth and 46th in population growth. From 2000 to 2004, 1.7 percent more people moved out of Ohio than moved in.

People who have capital create jobs and prosperity. They also volunteer and contribute to our local economies. They often are donors to charitable causes. But because of our death tax, they also are being forced to reside elsewhere. For people who are contemplating leaving Ohio in their twilight years, this bill would give them the option to stay in Ohio and live in a death tax-free city, village or township.

Too often, heirs have to sell the family business or farm in order to pay the taxes upon the death of a loved one. This is as wrong as wrong can be. Middle class families, farmers and small business people have spent a lifetime working hard and paying taxes -- to tax them and their heirs yet again is unconscionable.

This opinion editorial was printed in the Newark Advocate on January 23, 2008.