The U.S. House of Representatives is set to vote on the Death Tax Repeal Act of 2015 (H.R. 1105) this week. It will be the first House vote on repealing the federal estate tax in more than a decade. NAED supports the bill. The estate tax (AKA “death tax”) makes succession planning costly and complicated. It also makes it tougher to keep family businesses in the family.
The estate tax is levied on the assets of an estate before it is passed on to heirs. Estates can be subject to a tax rate as high as 40%. And the estate tax may actually COST taxpayers. Former undersecretary of the Treasury Steve Entin found, by using a “dynamic” economic analysis, that repealing the death tax would increase tax revenues by nearly $89 billion over 10 years.
Representative Kevin Brady (R-TX) introduced the bill to repeal the Estate Tax permanently. He argues that instead of forcing family businesses to tie up money for estate planning, those same businesses would be able to invest that money in job growth and expansion if the Estate Tax was permanently repealed.
President Obama has already threatened to veto the Estate Tax elimination bill, calling it a “tax cut for the rich”. Republicans argue eliminating the tax will allow farmers and small businesses to keep their farm or company in their families.
Under any analysis, the death tax contributes a tiny portion of federal revenues, while costing family businesses millions. Please tell your member of Congress to support HR 1105, the Death Tax Repeal Act of 2015.