As many of you know, the estate tax (aka death tax) expired on January 1, 2010, providing immense relief for families and businesses. BUT, if Congress fails to act this year, the Death Tax will return in full force in 2011 at a 55% rate and $1 million exemption.
The economic implications of the death tax are clear: it destroys hard-earned savings and pushes small and family-owned businesses into bankruptcy. Even economists themselves have acknowledged that the tax's adverse effects on the economy exceed generated revenues. Permanent repeal would create 1.5 million jobs and slash the unemployment rate by a full percentage point over the next two years. NTU has been very active in the fight for full, permanent repeal, but that fight is far from over. We must continue to put pressure on lawmakers to act NOW and repeal this onerous levy.
We will continue to keep you informed of developments to the death tax debate. In the meantime, check out these great videos by the Heritage Foundation that document how the death tax burdens businesses.