A global tax trend should earn big cheers from entrepreneurs, family businesses, investors, and anyone else concerned about the economy. Various countries have eliminated their estate or inheritance taxes, and thereby boosted their competitiveness and economies.

The U.S. is poised to join the anti-death-tax movement ... well, kind of ... maybe ... at least for a little while.

The U.S. estate tax is in the midst of being phased out. Since 2001, the top tax rate has declined from 60 percent to 46 percent, and the exemption level for the tax has risen from $675,000 to $2 million. In 2010, the death tax will be eliminated altogether.

But before the economic celebration gets too carried away, current law dictates that the death tax return in full fury in 2011, with a top tax rate of 60 percent and a $1 million exemption.

President George W. Bush supports the permanent repeal of the death tax. The U.S. House of Representatives has voted for ending the tax permanently, but the U.S. Senate has waffled. With a vote expected in May, senators should review what's going on globally and why.

Let's first get clear on how onerous the U.S. estate tax is compared to most other nations. A July 2005 survey of death tax rates in 50 industrialized and developing nations - a mix of large and emerging economies - was conducted by PricewaterhouseCoopers, LLP, for the American Council for Capital Formation's (ACCF's) Center for Policy Research.

Of those 50 nations, 24 at the time imposed no estate or inheritance taxes. That included Australia, Canada, India, Israel, Mexico, New Zealand, Portugal, and Switzerland.

Sweden became a member of the no-death-tax club in January 2005. Russia signed up in June. The Russian tax had rates ranging as high as 40%. President Vladimir Putin called for its repeal in April, and the State Duma, the lower house of parliament, passed it by a vote of 414 to 2. In his speech, Putin tied this measure to attracting capital investment. The law took effect in January of this year.

In November, Hong Kong became the 25th nation in that ACCF survey to cease inflicting a death tax. As of mid-February, Hong Kong's estate tax, which had a top rate of 15 percent, was eliminated. As assorted analysts and experts noted, the elimination of even a 15 percent death tax will boost incentives for assets to be held in Hong Kong and will attract international capital.

Among the other 25 nations, the U.S. imposes the third highest tax rate. The average tax rate among these nations is just under 25 percent. Factor in the all 50 countries, including the 25 now with a zero percent tax, and the average tax rate falls to about 12 percent. Again, the top U.S. rate is 46 percent.

But why is death tax elimination not just some giveaway to the rich, as opponents claim? There obviously are fairness issues in play after paying a lifetime of taxes and then getting hit again at death with a draconian tax on total assets. But it also goes to economic competitiveness and growth.

Killing the death tax would make the U.S., as with Russia and Hong Kong, more attractive to international investors, which is ever critical in this twenty-first century world of vast capital mobility. At home, entrepreneurs would be able to invest resources in building their businesses, rather than wasting time and treasure on efforts to avoid the tax man at death.

A formidable collection of econometric studies back up basic economic common sense by pointing to expanded capital investment, faster economic and income growth, and increased job creation resulting from the elimination of the death tax.

Interestingly, there also would be no or very little effect on government revenue. For example, a June 2003 study from the Joint Economic Committee in Congress noted how the negative impact of death taxes depresses income tax revenues: ‘The estate tax raises very little, if any, net revenue for the federal government. The distortionary effects of the estate tax result in losses under the income tax that are roughly the same size as estate tax revenues.'

Many other nations have come to understand the economic ills of imposing death taxes. In the international competition for capital, it has become increasingly clear that estate or inheritance taxes serve no purpose, other than to act as impediments to investment and growth.

Getting rid of estate taxes is a trend worth embracing. The U.S. death tax must go - forever.

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Raymond J. Keating is chief economist for the Small Business & Entrepreneurship Council.