The federal unified estate and gift tax — known as the federal transfer tax, or “death tax” — is stifling the economy. In fact, they probably do the most damage to output and income per dollar of revenue raised of all the taxes in the U.S. tax system. The economy, the pre-tax and post-tax incomes of workers, savers, and investors, and federal, state, and local revenue would all be higher if the estate and gift taxes were eliminated.