June 9, 2000

U.S. House of Representatives Passes Death Tax Repeal

(Washington, D.C.)--Today, the U.S. House of Representatives passed legislation that would repeal the estate tax, more commonly known as the "death tax."

The Death Tax Elimination Act, coauthored by Congressman Jim McCrery, would phase out the estate, gift, and generation skipping transfer tax over the next 10 years. The plan would also simplify portions of the generation skipping transfer tax rules prior to repeal. If signed into law, this legislation would provide $28.3 billion over five years in tax relief.

"The estate tax is perhaps the most oppressive provision of the Internal Revenue Code because it taxes small business owners, farmers, and families twice. Individuals pay income, capital gains, and other taxes throughout their lives, then the federal government taxes the value of their property again at the time of death. This has made it difficult for parents to pass family owned businesses and farms on to their children," said McCrery.

According to the National Federation of Independent Business, more than 70% of small businesses do not survive the second generation and 87% do not make it to the third generation. Sixty percent of small-business owners report that they would create new jobs over the coming year if estate taxes were eliminated.

"Death and taxes may be inevitable, but tax on death should not be. With passage of this bill, the House of Representatives has taken a positive step toward ending this burdensome tax and preserving family owned businesses in America. It is my hope the Senate will act on this important legislation soon, so the bill can be sent to the President’s desk as quickly as possible," said McCrery.