NTU Joins Coalition in Support of the Death Tax Repeal Act of 2015

The Honorable Mitch McConnell
Majority Leader
U.S. Senate
S-230, United States Capitol
Washington, DC 20510

CC: Senator Thune, Majority Whip John Cornyn, Senator Orrin Hatch, Congressman Kevin Brady, Speaker Paul Ryan

Dear Senator McConnell:

The undersigned organizations support a Senate vote on H.R. 1105, the House passed Death Tax Repeal Act of 2015.

The House of Representatives passed Congressman Brady’s (R-TX) Death Tax Repeal Act of 2015 on a bipartisan basis last April which marked the first time in ten years that either body of Congress was put on the record on this important issue. This year, we urge the Senate to take the next step in the legislative process by bringing the House passed legislation to the floor for a vote. Senator Thune’s (R-SD) mirror legislation to the House passed bill, S.860, has already amassed support from the majority of the Republican caucus. We support full and permanent repeal of the federal estate tax for the following reasons:

Repealing the death tax would spur job creation and grow the economy. Many studies have quantified the job losses caused by the estate tax. A recent Tax Foundation study found that the US could create over 150,000 jobs by repealing the estate tax. A 2012 study by the House Joint Economic Committee found that the estate tax has destroyed over $1.1 trillion of capital in the US economy -- loss of small business capital means fewer jobs and lower wages. Lawrence Summers, former Secretary of the Treasury under President Clinton; Alicia Munell, member of President Clinton's Council of Economic Advisors; Joseph Stiglitz, a Nobel laureate for economics; and Douglas Holtz-Eakin, former CBO Director have all published work on the estate tax's stifling effect on job growth and the economy as a whole.

The death tax contributes a very small portion of federal revenues. The estate tax currently accounts for less than one percent of federal revenue. There is a good argument that not collecting the estate tax would create more economic growth and lead to an increase in federal revenue from other taxes. A 2016 Tax Foundation analysis found repeal of the estate tax would increase federal revenues by $3.3 billion per year using a more realistic macroeconomic analysis. In addition, the estate tax forces family businesses to waste money on expensive insurance policies and estate planning. These burdensome compliance costs make it even harder for business owners to expand their businesses and create more jobs.

The death tax falls particularly hard on minorities. The estate tax threatens to confiscate generational capital from African-American and minority communities. Estate tax liabilities bankrupted the Chicago Defender – the oldest black-owned daily newspaper in the United States – and will reduce net African-American wealth by 13 percent, according to a study conducted by Boston College professors John Haven and Paul Schervish. According to a 2004 Impacto Group poll, 50 percent of Hispanic business owners know someone who sold their business to pay the estate tax and a quarter expect to sell their business because of the estate tax.

A super-majority of likely voters support eliminating the death tax. Poll after poll has indicated that a super-majority of likely voters support repealing the estate tax. Typically, two-thirds of likely voters support full and permanent repeal of the estate tax. People instinctively feel that the estate tax is not fair.

The death tax is unfair. It makes no sense to require grieving families to pay a confiscatory tax on their loved one’s lifetime savings. Often this tax is paid by selling family assets like farms and businesses. Other times, employees of the family business must be laid off and payrolls slashed. No one should be punished for fulfilling the American dream.

The negative effects of the estate tax make permanent repeal the only solution for family businesses and farms. Repealing the estate tax will help America’s family businesses create jobs, expand operations, and grow the economy. We thank you for your continued leadership on this important issue.

Signed,

AMT – The Association for Manufacturing Technology	Food Marketing Institute	Agricultural Retailers Association
American Dental Association	American Wholesale Marketers Association	Associated Equipment Distributors
International Franchise Association	American Supply Association	National Cotton Council of America
Heating, Air-conditioning, & Refrigeration Distributors International	National Association of Electrical Distributors	National Lumber and Building Material Dealers Association
National Council of Farmer Cooperatives	American Trucking Association	Associated General Contractors of America
North American Meat Institute	Hardwood Federation	National Confectioners Association
Association of Mature American Citizens	American Rental Association	Americans for Tax Reform
Forest Landowners	Associated Builders and Contractors, Inc.	National Association of Home Builders
Industrial Minerals Association – North America	International Sleep Products Association	National Taxpayers Union
National Automatic Merchandising Association	NTCA–The Rural Broadband Association	National Insulation Association
AmericanHort (American Horticulture Industry Association)	Mason Contractors Association of America	American International Automobile Dealers Association
Heritage Action for America	Tire Industry Association	American Foundry Society
National Industrial Sand Association	American Architectural Manufacturers Association	NACS – The Association for Convenience and Fuel Retailing
Window & Door Manufacturers Association	Industrial Supply Association	Aeronautical Repair Station Association
American Business Defense Council	National Community Pharmacists Association	International Foodservice Distributors Association
ISSA – The Worldwide Cleaning Industry Association	United Fresh Produce Association	National Electrical Contractors Association
North American Die Casting Association	North American Equipment Dealers Association	Americans for Prosperity
Club for Growth	National Propane Gas Association	National Funeral Directors Association
International Association of Plastics Distribution	United States Cattlemen's Association	International Sign Association
Auto Care Association	National Black Chamber of Commerce	National Small Business Association
International Housewares Association	Petroleum Marketers Association of America	American Conservative Union
Professional Beauty Association	Materials Handling Equipment Distributors Association	Service Station Dealers of America and Allied Trades
Printing Industries of America	Truck Renting and Leasing Association	National Milk Producers Federation
Small Business & Entrepreneurship Council	Let Freedom Ring	American Beverage Licensees
Woodworking Machine Industry Association	NPES – The Association for Suppliers of Printing, Publishing and Converting Technologies	Irrigation Association
Wine & Spirit Wholesalers of America	National Grange	Associated Wire Rope Fabricators
American Loggers Council	NAHAD – The Association for Hose and Accessories Distribution	Plumbing-Heating-Cooling Contractors Association
WMDA Service Station & Automotive Repair Association	The Dude Ranchers’ Association	R-Street Institute
Forest Landowners Tax Council	Hispanic Leadership Fund	International Association of Refrigerated Warehouses
American Bus Association	American Horse Council	Center for Freedom and Prosperity
Global Cold Chain Alliance	American Commitment	Log Cabin Republicans
Free Congress Action	American Moving & Storage Association	National Association for the Self-Employed
Independent Electrical Contractors	National Association of RV Parks & Campgrounds	NTEA – The Association for the Work Truck Industry
U.S. Business and Industry Council	Council for Citizens Against Government Waste	National Christmas Tree Association
National Tax Limitation Committee	Competitive Enterprise Institute	Taxpayer Protection Alliance
American Civil Rights Union	Campaign for Liberty	Less Government
	Maryland Taxpayers Association	Americans for Constitutional Action
American Values