Washington, DC - Late Thursday afternoon, Congressman Ron Paul joined with
273 of his colleagues in voting to override the presidential veto of H.R. 8, the
"Death Tax Elimination Act." Despite widespread public support for the measure,
proponents could not garner the necessary votes to pass the legislation (2/3 of
both the House and Senate must vote to override the veto). The final vote total
was 274-157, indicating support in both parties for the estate tax repeal.
Congressman Paul pledged to continue his efforts to end the estate tax in
the next Congress. "The estate tax is immoral and counter-productive," Paul
stated. "It amounts to government confiscation of an individual’s property when
he or she dies. Furthermore, it is a terrible form of double taxation. Americans
pay federal and state income taxes on their wages throughout their lives. They
pay income and capital gains taxes on money they save and invest. They pay sales
taxes whenever they buy something. It is outrageous to tax them once again when
they die, simply because they have worked hard and saved to create a legacy to
pass on to their families."
Estate taxes represent a very small portion of federal tax revenues
(approximately 1.5%). The economic impact of the estate taxes, however, is
widespread. Because of the complexity of the estate tax, Americans must spend
millions every year on attorneys and accountants to minimize their tax
burdens.
It’s a myth that only the rich are affected by estate taxes," Paul
continued. "Virtually all economists agree that the tax discourages work,
savings, and thrift. Less savings results in less capital formation, which
reduces economic development. My office has received hundreds of letters and
emails from individuals and small business owners in my district. Theses people
are not ‘rich,’ but they have worked hard and saved to create an inheritance for
their children. They are concerned that their children may have to sell the
family farm or business simply to pay the estate tax bill. There is no
justification for taxing these people once again simply because they have led
productive lives."
Paul remains optimistic that elimination of the estate tax will remain an
issue in the next Congress. "While it’s unfortunate that the administration
vetoed the Act, I believe we will have greater support for an estate tax repeal
in the coming year. My constituents and Americans across the country oppose the
death tax. They understand that it’s wrong to tax people simply because they
worked hard and saved throughout their lives. I hope that the next
administration understands how important the estate tax repeal is to American
families."
