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FOR IMMEDIATE RELEASE September 7, 2000 |
CONTACT: Jen Bennett
202/225-5121 |
| |
Washington—The House today failed to override the
President's veto of the Death Tax Repeal by a vote of 274 to 157, 11 votes
shy of the necessary two-thirds. 53 Democrats voted with the
Republican majority on passage. Thirteen Democrats switched their
votes to prevent an override. Peterson is an original cosponsor of the
bill and voted today to override the President's veto.
"The Estate Tax is an unfair tax and is economically harmful and has a negligible effect on total government revenue," said Peterson. "The Death Tax is flawed in principle - the government makes the death of a loved one a taxable event. Thanks to Uncle Sam, grieving family members are burdened with tax compliance at the same time they are coping with personal matters such as funeral arrangements." Additionally, the high rates of taxation discourage savings and capital accumulation. The National Federation of Independent Businesses estimates that one-third of small-business owners today will have to sell all or part of their firm to pay death taxes. Also, one-third of family farmers believed that if the principal owner of their family-business died tomorrow, the heirs would be forced to sell off or liquidate part of their business. "In too many cases, the death tax robs communities of its family-owned businesses that are forced to close their doors or sell out to large corporations," said Peterson. While the Death Tax has significant economic and social costs, the net revenue affect is negligible. These figures show there is little budgetary justification for this tax. · Death taxes add less than one percent of revenue to the federal government and compliance costs associated with the death tax cost the economy almost as much as the revenue raised. · Between 1999 and 2008, eliminating the death tax would cost the Treasury $191.5 billion, but the additional GDP of $700 billion created by its elimination would yield an additional $148.7 billion in other taxes. · By 2006, the indirect revenue gain would offset any revenue lost. "It is inherently wrong that individuals are forced to sell a family
business or farm just to pay death taxes. Saving to pass on an inheritance
is something the government should promote, not discourage," added
Peterson. | |
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