July 1, 2002
Virginians overwhelmingly support a death tax repeal says respected pollster
In the 2002 Session of the Virginia General Assembly, legislation was introduced to phase out Virginia's death tax over the next several years as the federal death tax is phased out. The legislation was reported unanimously by the House of Delegates Finance Committee and carried over to the 2003 Session by the House Appropriations Committee.
As long as a credit was allowed against federal death taxes equal to the amount of state death taxes paid, the existence of the Virginia death tax was inconsequential. But many Virginia taxpayers, family-owned farms and businesses, and influential civic, business and professional organizations are now discovering -- much to their alarm -- that Virginia may not follow the federal government's lead in phasing out the death tax. Indeed, unless state legislation is enacted, Virginia's death tax levy will partly replace the federal levy and undo much of the good that has been done for Virginia taxpayers by federal death tax repeal.
To determine what Virginians think on this subject, the Luntz Research Companies, a nationally prominent polling firm, conducted a statewide survey of 400 registered voters in June of this year.
The survey examined voter opinions on the fairness of the Virginia death tax and the appropriateness of continuing the Virginia death tax even after congressional passage last year of legislation phasing out the federal tax.
The survey measured voter opinions on repeal of the state death tax during Virginia's current economic recession. Voters were asked about their support for death tax repeal even if spending on education, roads and other needs would be adversely affected.
The survey also asked voters whether they would be more or less likely to vote for a local legislator or statewide candidate based on that official's support or opposition to death tax repeal in Virginia.
The survey found broad, intense, bipartisan support for repeal of Virginia's death tax.
Virginians of all races, genders, income levels and political persuasions believe the tax is unfair and should be repealed.
Support for death tax repeal remains intense even when voters are reminded of the current recession and the prospect that death tax repeal could adversely impact funding for schools, roads and other government services and infrastructure.
Voters not only think the state death tax is grossly unfair. They also understand that if our state continues to levy a death tax while other states do not, Virginia will lose jobs, private investment, and tax revenue to other states.
Perhaps most important, the survey makes clear that Virginia voters are prepared to hold local legislators and statewide candidates accountable for failing to repeal Virginia's death tax.
KEY FINDINGS
VIRGINIANS OVERWHELMINGLY REJECT THE DEATH TAX AS UNFAIR
When asked whether they support or oppose reducing and eventually eliminating state death taxes, 82% of Virginia voters express support. 67% "strongly support" eliminating the tax.
IT IS UNFAIR FOR VIRGINIA TO COLLECT DEATH TAXES WHEN CONGRESS ELIMINATED THE DEATH TAX
87% of Virginians say it is unfair to still pay death taxes under these circumstances.
VIRGINIA'S DEATH TAX IS AS POLITICALLY EXPLOSIVE AS THE DETESTED CAR TAX
When asked to pick the one Virginia tax they would most like to eliminate if they could eliminate just one, equal percentages of voters (27%) picked the death tax and the car tax. Local real estate taxes came in a distant third (18%), and no other tax was close. Indeed, while only 35% of Virginia voters say the overall amount of state taxes they pay is unfair, and 55% say the car tax is unfair, 67% of voters surveyed say the death tax is unfair.
VIRGINIANS WANT TO ATTRACT JOB-PRODUCING BUSINESSES TO THE STATE BY ELIMINATING DEATH TAXES, NOT CHASE VIRGINIA BUSINESS OWNERS TO OTHER STATES WHERE DEATH TAXES ARE NOT COLLECTED
67% of voters agree (40% "strongly" agree) that reducing or eliminating the Virginia death tax will be good for the state because it will keep business-owning families in Virginia where they will continue to pay other taxes and provide jobs. Only 23% disagree.
SUPPORT FOR DEATH TAX REPEAL IN VIRGINIA REMAINS INTENSE EVEN WHEN THE POSSIBILITY OF AN ADVERSE IMPACT ON EDUCATION FUNDING IS SUGGESTED
Given the opportunity to agree or disagree with the statement that per-student spending on education in Virginia is lower than other states and that the need for more education funding means Virginia cannot afford to reduce or eliminate the death tax now, 62% of voters disagreed and only 28% agreed. When mounting school construction and other infrastructure needs were cited as a reason why Virginia should not reduce or eliminate the death tax now, 66% of voters disagreed and only 26% agreed.
DEATH TAX REPEAL IN VIRGINIA IS A HIGHER PRIORITY FOR VIRGINIA VOTERS THAN POPULAR SPENDING PROGRAMS
Only 30% of voters would oppose reducing or eliminating state death taxes even after hearing the following argument against repeal: "This is the wrong time to reduce or eliminate the death tax. We should take that money and spend it on education, on roads, on improving our infrastructure. We already have a budget deficit and the state is fighting off a recession. If we eliminate the death tax now, that means less money for the things we really do need. If we abolish the death tax, Virginia will have to raise other taxes to replace those revenues."
VIRGINIANS REGARD ELIMINATION OF THE DEATH TAX AS AN ISSUE OF BASIC FAIRNESS AND REJECT THE NOTION OF SOAKING THE RICH.
Only 26% of voters would oppose reducing or eliminating state death taxes even after hearing the following inflammatory argument: "The Virginia death tax is fair because it only affects the rich. In fact, less than 3% of all families actually have to pay a death tax, virtually all of them are millionaires, multi-millionaires, or billionaires. These people hire high-priced accountants and lawyers to avoid paying taxes while they're alive, and the only way to make them pay their fair share is to tax their heirs."
VOTERS HAVE INTENSE VIEWS ON THE DEATH TAX AND HOLD LEGISLATORS AND STATEWIDE OFFICIALS ACCOUNTABLE
59% of voters say they would be more likely to vote against their own local member of the General Assembly if they learned he or she wanted to maintain the death tax in Virginia. 63% would be more likely to vote against a statewide candidate who favored continuing the death tax. Reflecting the intensity of this attitude, one out of every three voters say they are "much more likely" to vote against someone who favors maintaining Virginia's death tax.
SUPPORT FOR STATE DEATH TAX REPEAL EARNS STRONG APPROVAL FROM VIRGINIA VOTERS
More than 70% of voters say they would be more likely to vote for a local legislator or statewide candidate if they knew he or she wanted to abolish the state death tax.