NFIB

Time to Kill the Death Tax
07/19/2005

Act now: Tell your senators that compromise will destroy small business

For the first time since 2001, the U.S. Senate appears ready to seriously consider death-tax repeal. But your opinion is critical leading up to the vote, says NFIB Executive Vice President Dan Danner, because tax-relief foes may attempt to water down full, permanent repeal of this onerous tax.

“These so-called ‘compromise’ efforts would leave small business right where it started – with no leg to stand on. The death tax kills jobs,” Danner says. “It forces capital out of America’s family businesses at the time when they can least afford it – immediately after the death of one of the principal owners. It would be difficult to think of a more burdensome time to tax a business.”

Small-business owners should act today to call for full, permanent repeal, Danner says.

“Tell your senators that a ‘compromise’ solution just postpones the inevitable demise of small businesses in the future, and leaves you unable to plan for growth,” he says. “Far too often, the death tax literally taxes family businesses right out of the family. Until the death tax is permanently repealed, it will continue to kill small businesses.”

How we got here
In 2001, Congress passed a 10-year phase out of the death tax, but lawmakers didn’t finish the job. While the death tax is scheduled to be fully repealed in 2010, it will return in 2011 at its full 2001 level of 55 percent if Congress doesn’t act now.

In the 108th Congress, permanent repeal legislation easily passed the House but stalled in the Senate.

This spring, legislation to permanently repeal the death tax (H.R. 8) passed the House in April. President Bush has urged Congress to make all tax relief passed in recent years permanent.

What to do
Contact your lawmakers today. Tell your senators you support S. 420 and ask them to vote for full, permanent repeal of the death tax!

Call your senators via the U.S. Senate switchboard at (202) 224-3121.