The Honorable Kevin Brady
United States House of Representatives
301 Cannon House Office Building
Washington, DC 20515
Dear Representative Brady:
On behalf
of the 362,000 members of the National Taxpayers Union (NTU), I write in strong
support of your bill, H.R. 1259, the “Death Tax Repeal Permanency Act of 2011.”
Your legislation would amend the Internal Revenue Code to finally ensure the
completion of one of NTU’s core goals: permanent and full repeal of the estate
and inheritance tax.
Elimination
of the death tax is a long overdue reform. The dubious revenue claims made by
its supporters are far outweighed by the negative economic and moral
implications of the tax. Most economists agree that the death tax is an
inefficient means of raising revenue for the federal government. In fact, due
to collection, compliance, and avoidance costs, coupled with its adverse impact
on economic growth, repealing the death tax is likely to increase net revenue
for the federal government.
While the tax may have little or no net effect
on our deficit, it certainly leaves an indelible mark on our economy. As a tax
on capital and entrepreneurship it slows business activity, destroys jobs, and
suppresses wages. A recent study by former CBO Director Douglas Holtz-Eakin
found that full repeal would lead to the creation of 1.5 million jobs, expand
investment by 3 percent, and increase small business capital by more than $1.6
trillion. By enacting permanent elimination of the death tax, your bill would
provide a much-needed element of long-term relief for our economy and small
businesses who continue to suffer in the aftermath of the recession.
The
economic case against the death tax is persuasive enough, but the moral case is
even more powerful. The tax threatens small businesses and farms that are
passed down from generation-to-generation, many of which do not have the liquid
assets to pay the pricetag the federal government has placed on death. The inevitable
result is an inability to reinvest in the businesses’ future success, laid off
employees, and buy-outs by larger entities. By punishing thrift, savings, and
hard work, the death tax stifles the very attributes that will be necessary to
ensure America’s return to prosperity.
H.R. 1259
is a chance to turn back the death tax, which has loomed ominously over
entrepreneurs and small businesses since its inception more than 90 years ago. In
order to put an end to this unwise policy, NTU pledges to work closely with you
to pass the “Death Tax Repeal Permanency Act of 2011.”
Sincerely,
Brandon
Greife
Federal
Government Affairs Manager
Letter
