Death Tax Repeal Permanency Act H.R. 8

Death Tax Repeal Permanency Act
H.R. 8

Washington, Apr 14 - Representative Dave Weldon voted in favor of the Death Tax Repeal Permanency Act of 2005 and it passed the U.S. House of Representatives by a vote of 272 to 162.

Weldon submitted the following statement to the Congressional Record in support of repealin

"The Death Tax needs to die. Along with the marriage penalty, the death tax is perhaps the most disgraceful tax levied by the Federal Government and it should be repealed immediately. The death tax is double taxation. Small business owners and family farmers pay taxes throughout their lifetime, then at the time of death they are assessed another tax on the value of the property on which they have already paid taxes. This is unfair, unjust and an inefficient burden on our economy.

"I have spoken in the past about a constituent of mine, Danny Sexton of Kissimmee, FL
and owner of Kissimmee Florist. He, like millions of other Americans, has experienced the sad realities of the Death Tax. He joined me several years ago in Washington to highlight the adverse impact the Death Tax had on his family business.

Mr. Sexton, who comes from a family of florists, inherited his uncle's flower shop and was faced with paying almost $160,000 in estate taxes. This forced him to have to liquidate all of the assets, lay off workers and take out a loan just to pay the death tax. He also had to establish a line of credit just to keep the operation running.

Danny Sexton is the reason we need to appeal the death tax. The death tax isn't a tax on just the rich, it is a tax that hurts family owned businesses--family owned businesses that are the backbone of this great Nation. It also caused several average workers to lose their jobs.

"Family owned businesses provide and create millions of jobs for American workers. The people who worked in Mr. Sexton's florist were not rich, but they lost their jobs because of the Death Tax.

"In a recent survey conducted by the National Federation of Independent Businesses, 89% of small business owners favored permanent repeal of the death tax. Why? Because these small business owners know this tax may mean the death of their business for future generations. According to the Center for the Study of Taxation, more than 70% of family businesses do not survive the second generation and 87% do not make it to the third generation. Family owned and operated businesses deserve the right to be inherited by the next generation without the blow of the death tax.

"In current law, the death tax is phased-out, completely repealed in 2010. But that is not good enough because in 2011, the tax reemerges in full force. That means taxpayers must plan for three different scenarios when passing along their family business - pre- 2010 when the exemption levels are gradually increasing and the top rate gradually decreasing; 2010 when the tax is completely repealed; or 2011 when the tax reemerges. This is complicated, confusing and hard to plan for - unless a small business owner knows for certain when his or her death will occur. When we make this tax repeal permanent, taxpayers will have the ability to make long-term financial plans with certainty and will have the opportunity to pass on their hard earned family businesses and farms to future generations. It will also ensure that those who work for these small businesses are able to keep their jobs.

"I urge my colleagues to vote for H.R. 8, the Death Tax Repeal Permanency Act of 2005."

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