but it's true that in some cases some action needs to be taken - the estate tax for example. Having it be 0 in 2010 but back to where it was in 2011 is bad policy and wicked.

I like the concept of the estate tax. However, there are some very real issues involved particularly with ranches and farms, which often have the curious combination of a very low cash flow but very high asset value. The thing to realize is that in some cases you have ranchers making say $30k or $40k a year running cattle on $50million land parcels.

So if the parent dies, handing it down in the family, the taxes are due even if the children would like to keep the land and continue the business at the old level.

This is bad for us as environmentalists because $50 million is its value as houses and strip malls. In California, land prices are through the roof and in general farmland is so high because of its concurrent development value that it is very difficult to make a profit if you are paying a mortgage of recent vintage.

Conservation easements are a big help, but they also can limit the ability to change gears if times become truly tough.

Setting up estate taxes so they only apply to assets that are liquidated would be an improvement. Or you could specifically exempt property where the beneficiary makes his primary residence, or where the beneficiary works more than half-time.