NTU urges all Representatives to vote “YES” on H.R. 1105, the “Death Tax Repeal Act,” which would repeal the federal estate and generation-skipping transfer taxes, as well as permanently cap the gift tax rate at 35 percent and establish a $5 million lifetime gift tax exemption.
The federal estate, or death tax, brings in less than one-half of one percent of total federal tax revenue, yet often leaves an outsized footprint of economic damage wherever it is levied. As a tax on capital and entrepreneurship it slows business activity, destroys jobs, and suppresses wages. A March 2015 study by the Tax Foundation found that repealing the death tax would reap an enormous benefit for the economy with nearly 150,000 new jobs and an additional .08 percent in much needed economic growth over just ten years, confirming similar findings of growth potential in an earlier study by former Congressional Budget Office Director Douglas Holtz-Eakin.
The death tax threatens small businesses and farms that are passed down through generations, many of which do not have liquid assets to pay the substantial price tag the federal government has placed on inheritance. The results include the inability to reinvest in the business’s 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 are necessary to ensure America’s future prosperity.
The Death Tax Repeal Act would create immediate and tangible relief for many taxpayers, especially farmers and small business owners.
Roll call votes on H.R. 1105 will be significantly weighted in our annual Rating of Congress and a “Yes” vote will be considered the pro-taxpayer position.
If you have any questions, please contact NTU Federal Affairs Manager Nan Swift at (703) 683-5700