End of the Estate (aka “Death”) Tax?

The U.S. Senate will be debating permanent repeal of the so called “death” tax this week. I am seeing a lot of misinformed opinion about the effects of its repeal. For example, the SEATTLE POST-INTELLIGENCER thinks the true cost will be a trillion dollars in lost revenue over the next decade. WAPO has a similar view.
What these views miss is the dynamic effects of the tax. There is massive avoidance of the tax. That massive avoidance would vanish with repeal; and the net effect would more than replace the lost revenues via more tax collections on capital gains and increased incomes. Here is an economically literate debate on the merits of repeal.