The estate tax, known also as the death tax, requires that the legal estates or families of deceased individuals pay taxes on inherited assets exceeding $675,000. Starting at 37 percent, the lowest possible assessed rate, estate taxes can reach a maximum level of 55 percent on estates with assets greater than $3 million. First instituted in 1797 to finance the expansion of the U.S. naval fleet, estate taxes have existed in various forms and at different times throughout the nation's history. The current estate tax concept dates back to 1916 and its principles were contained in the Tax Reform Act of 1976, which set the tax rules for all transfers of wealth. While roughly 2 percent of all U.S. families pay it annually, the estate tax generated nearly $23 billion in tax revenues in 1998 alone.   More  

The surplus is big and getting bigger: from February to June 2000, the size of the surplus more than doubled. It's an election year and the candidates are licking their chops over the projected $1.9 trillion budget surplus over the next 10 years recently announced by President Clinton. That figure excludes money set aside for Social Security—the entire sum is fair game for the politicians and everyone wants a piece of the big pie.   More