WASHINGTON, Oct. 2, 2012—In a new analysis published today, OMB Watch makes the case for a strong, effective estate tax. The analysis lays out the importance of the tax in raising federal revenues and the ongoing budget debate and presents options for moving forward on the estate tax as the expiration of the Bush tax cuts looms at the end of the year.

With the federal budget on the precipice of a "fiscal cliff" of pending budget cuts and tax increases that could take place starting Jan. 2 and tip the economy into recession, many budget watchers are waiting on the outcome of this year's elections to determine how to proceed. One issue up for discussion is the renewal of the inheritance tax (also known as the estate tax).

The fiscal year (FY) 2013 budgets proposed by the House Congressional Progressive Caucus (CPC) and Rep. Paul Ryan (R-WI), Chair of the House Budget Committee, are perfect examples of the fact that budgets are about choices. The revenue proposals in each serve as a study of opposites. Where the Ryan budget would double down on the Bush tax cuts and provide huge windfalls to the country’s wealthiest, the CPC’s proposal – The Budget for All – would ask those with the most wealth to help fund important investments in our public structures.