Let's get the real story behind Initiative 920 (proposing to abolish the Washington State estate tax). People need to understand what's really going on here.

As a Certified Financial Planner practitioner serving high net worth and institutional investors in Washington State, I am probably more familiar with the estate tax (or "legacy tax") and related planning strategies than the average citizen. Clients I serve, along with other millionaire Washingtonians, are potentially subject to our Washington State estate tax. But many of us also understand that a tax system that includes estate taxes helps keep taxes lower for nearly everyone and helps fund essential State services. We would never support an initiative such as I-920.

On the other hand, the I-920 Committee to Abolish WA ST Estate Tax is a well-funded campaign supported by a handful of ultra-wealthy people who want to reduce their own taxes at the expense of the rest of us.

The estate tax is progressive in that it only affects the wealthiest 0.5 % of Washingtonians, those that can well afford it, while it keeps taxes lower for everyone else. Why would the other 99.5 % of Washingtonians support an initiative or vote to increase their own taxes while giving a tax break to the richest millionaires and billionaires in the state? Only because they didn't know any better.

Worse yet, I-920 would likely result in drastic cuts to our state's education system. What kind of society does that leave us? What are those values?

As a member of Responsible Wealth, I join Bill Gates, Sr., Paul Newman, former IRS Commissioner Sheldon Cohen, and other well-informed business and community leaders in their strong support for keeping the estate tax--or "grateful heirs" tax, as Mr. Gates calls it.

This is not an issue of more taxes or less taxes; it's an issue of tax fairness. We can continue to debate the level of taxation, but there will always be some taxes. Taxes are the price we pay for a cohesive, educated, innovative society with stable markets, good infrastructure, and the rule of law. Whatever the level of taxes, they should be distributed fairly. The estate tax is a fair tax on the heirs of those who have benefited the most from our stable society--the extremely wealthy.

Related to this local issue, there are neo-conservative activists in Congress that want to repeal the federal estate tax. The federal estate tax will only affect an estimated 114 estates in Washington in 2009, all worth over $3.5 million.

Eliminating that tax would result in everyone else picking up the slack. In addition, because of currently available estate planning strategies, repeal of the estate tax would have a drastic impact on nonprofit organizations and reduce charitable giving in Washington State.

The effect of the estate tax on family farms and small businesses is negligible and manageable with proper planning. So don't believe the scare tactics and myths proffered by those who propose eliminating the legacy tax.

Let's not fall prey to the rhetoric of a wealthy few, apparently more concerned with their self-interest than their friends, neighbors, and fellow citizens. Now you know better when faced with the I-920 petition drive or possibly, ballot vote.

Eric Smith is a certified financial planner and Ballard resident.