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Opponents of the estate tax, which they pejoratively call the “death tax,” believe that it
unduly burdens heirs and supersedes the wishes of decedents. They note that inheritors of
family-owned businesses such as farms or stores, the value of which is tied up in nonliquid
assets, are sometimes forced to sell off the businesses to pay the tax.
Proponents of the estate tax argue that it helps to prevent the perpetuation of class
distinctions through inherited wealth. They argue that current exemptions protect family
farms and small businesses, and that lowering or repealing the tax would only benefit
wealthy families who seek to avoid paying their share.
Consumer Products and Services Regulations. Most states have laws designed to protect
consumers from dangerous products and low-quality services. These measures include
mandated health and safety inspections of businesses, labeling requirements for consumer
products, and occupational-licensure requirements for certain professions.
While many of these laws enjoy wide support, some analysts argue that they restrict
commerce and increase prices. Most local governments, for example, impose building
codes and zoning restrictions on business owners to ensure that buildings are safe and
businesses do not disturb the communities around them. However, the rules limit some
freedoms and impose costs on owners.
Since the mid-1980s, some states and localities have banned smoking in many businesses.
The first smoking bans applied to offices and other nonpublic workplaces, but since 1993,
the District of Columbia and 21 states have banned smoking in most bars, restaurants, and
other workplaces open to the public. These laws are intended to protect customers and
staff from the danger of environmental tobacco smoke. However, some argue that property
owners should be able to decide whether to allow a legal activity such as smoking on their
premises.
State and local governments require licenses for professions ranging from medicine to hair
braiding and fortune telling. These licenses can be expensive and difficult to obtain. Courts
have ruled that states may regulate certain professions, but that these laws must be
enforced fairly. The Supreme Court’s 1976 decision in New Orleans v. Dukes, for example,
held that a state could not prevent new street vendors from operating if it allowed existing
vendors to continue. Recently courts and legislatures have eliminated or relaxed
requirements for licensure in cosmetology, coffin selling, weed control, sign hanging, and
interior design.39
Under the Commerce Clause of the Constitution, the federal government is empowered to
regulate products and services that are provided across state lines. However, these
regulations often require states to permit the free movement of goods. For instance, in
2005 the Supreme Court overturned statutes in New York and Michigan that forbade
direct shipments from out-of-state wineries to consumers. The court held that states may
not treat interstate commerce in alcohol differently from intrastate commerce.40
The federal government has traditionally controlled certain forms of interstate travel,
including air travel. In recent years, however, it has deregulated air travel to spur
innovation and efficiency. Since 1969, the government has moved from directly allocating
takeoff and landing rights to overseeing self-regulation by the commercial airline industry,
and then to allowing the private ownership of transferable property rights in airport
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