Dear Colleague:
On behalf of our nation's family-owned small businesses and farms, we are writing to ask that you add your name as an original cosponsor of the bipartisan Death Tax Repeal Permanency Act.
The 107th Congress passed and President Bush signed the Economic Growth and Tax Relief Reconciliation Act (EGTRRA) of 2001. EGTRRA included a repeal of the federal death tax. As a result, current law phases-out the federal death tax until it is completely repealed in 2010. We commend our colleagues on both sides of the aisle who worked hard for this important relief. Unfortunately, current law also provides for the death tax to spring back to life in 2011. Our legislation would make death tax repeal permanent in 2010. This legislation mirrors H.R. 8 from the 109th Congress, which passed by a bipartisan vote of 272 – 162.
Across America, small businesses and family farms face the threat of a punitive death tax that could undo a lifetime of hard work and thrift. Aside from the issue of fundamental fairness, there are a host of economic and tax policy reasons why Congress should act to permanently repeal the federal death tax. To name a few:
- The death tax is a job killer. One study estimates that between 175,000 and 250,000 potential jobs are lost each year as a result of the death tax.
- The death tax is inefficient. Small businesses and family farms must divert resources from productive uses to engage in financial planning designed solely to avoid punitive taxation. These resources would be better used growing our economy.
- The death tax discourages savings and investment. The threat of a 45% tax discourages continued investment in a family business or farm operation. Not only is this a perverse incentive, it punishes a lifetime of success.
But perhaps the most important reason to permanently repeal the death tax is the common-sense presumption that death should not be a taxable event.
We hope you will join us as an original cosponsor of this important bipartisan proposal. Please feel free to contact either Erik Rasmussen in Rep. Kenny Hulshof’s office at 5-2956 or Denise Edwards in Rep. Bud Cramer’s office at 5-4801 to add your name as a cosponsor.
Sincerely,
Kenny Hulshof
Member of Congress
Bud Cramer
Member of Congress
