The Honorable Kevin Brady
United States House of Representatives
301 Cannon House Office Building
Washington, DC 20515
Dear Representative Brady:
On behalfof the 362,000 members of the National Taxpayers Union (NTU), I write in strongsupport 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 thecompletion of one of NTU’s core goals: permanent and full repeal of the estateand inheritance tax.
Eliminationof the death tax is a long overdue reform. The dubious revenue claims made byits supporters are far outweighed by the negative economic and moralimplications of the tax. Most economists agree that the death tax is aninefficient means of raising revenue for the federal government. In fact, dueto collection, compliance, and avoidance costs, coupled with its adverse impacton economic growth, repealing the death tax is likely to increase net revenuefor the federal government.
While the tax may have little or no net effecton our deficit, it certainly leaves an indelible mark on our economy. As a taxon capital and entrepreneurship it slows business activity, destroys jobs, andsuppresses wages. A recent study by former CBO Director Douglas Holtz-Eakinfound that full repeal would lead to the creation of 1.5 million jobs, expandinvestment by 3 percent, and increase small business capital by more than $1.6trillion. By enacting permanent elimination of the death tax, your bill wouldprovide a much-needed element of long-term relief for our economy and smallbusinesses who continue to suffer in the aftermath of the recession.
Theeconomic case against the death tax is persuasive enough, but the moral case iseven more powerful. The tax threatens small businesses and farms that arepassed down from generation-to-generation, many of which do not have the liquidassets to pay the pricetag the federal government has placed on death. The inevitableresult is an inability to reinvest in the businesses’ future success, laid offemployees, and buy-outs by larger entities. By punishing thrift, savings, andhard work, the death tax stifles the very attributes that will be necessary toensure America’s return to prosperity.
H.R. 1259is a chance to turn back the death tax, which has loomed ominously overentrepreneurs and small businesses since its inception more than 90 years ago. Inorder to put an end to this unwise policy, NTU pledges to work closely with youto pass the “Death Tax Repeal Permanency Act of 2011.”
Sincerely,
BrandonGreife
FederalGovernment Affairs Manager