U.S. House Passes Permanent Repeal of Estate Tax
Wednesday, April 13, 2005
Boren says reforms will help family business grow
WASHINGTON D.C - U.S. Representative Dan Boren today supported passage of the Death Tax Repeal Permanency Act. Passing the House, the measure abolishes death taxes on small family owned businesses that are vital to Eastern Oklahoma's growth.
In 2001, Congress passed legislation that provided relief for America's small businesses, but due to a Senate rule the provision was set to expire or "sunset" by 2010. "The legislation we passed today will permanently bury the death tax," said Boren.
The death tax has long been considered an unfair tax burden that prevents family business from growing, and often leading to the liquidation and sale of many otherwise healthy businesses. Many small business owners, particularly from family businesses and farms, pay exorbitant yearly life-insurance premiums so that their estates will be able to pay death taxes when the owners die.
"This is obviously money and time that would be better spent growing the family business or working the family farm," Boren said.
"In my district, countless rural families are working hard to maintain the farms and businesses built by their forefathers. The death tax is a devastating blow of up to 55% in taxes on an entire operation when a family member dies," said Boren.
"High tax rates and complex tax codes stifle job growth. I'm for a fair and simple tax code, that promotes the innovation and the entrepreneurial opportunities that made our nation great," Boren explained.
Permanently repealing of the death tax has been endorsed by many pro-business groups including the National Federation of Independent Businesses, National Association of Manufacturers, National Cattlemen's Beef Association, American Business Conference, Associated General Contractors of America, American Farm Bureau Federation, Citizens Against Government Waste, the National Restaurant Assn, American Hotel and Lodging Association, Small Business Entrepreneurship Council, and the U.S. Chamber of Commerce.