Brown Opposes Death Tax

Statement

Following the passage of H.R. 4154, Permanent Estate Tax Relief for Families, Farmers, and Small Business Act of 2009, Congressman Henry E. Brown, Jr. (R-SC) made the following remarks:

"I do not support the Democrats' so-called "Permanent" Death Tax Bill and voted no on H.R. 4154.

The loss of a spouse, parent or loved one should not be a taxable event and it is fundamentally unfair for the Federal government to place a financial burden on the family of the deceased. The death tax discourages savings and investments by rewarding those who freely spend their earnings and additionally makes it difficult for the owners of small businesses to pass their business along to the next generation. As small business are the leading job creators in this country, the death tax runs directly counter to my primary goal of putting Americans back to work.

I cannot support H.R. 4154 because this legislation maintains this unfair tax at its current levels. Under existing law, the death tax is set to expire in 2010 decreasing a tax rate of 45 percent to zero. However, the Democrats' bill reinstates and extends the death tax at its extremely high rate.

This measure represents yet another tax increase for families during a time when the American people are already struggling and it ultimately raises taxes by $265 billion over the next ten years. Not only does the bill keep the death tax at a 45% rate, but the $3.5 million exemption is not indexed for inflation, meaning that it will hit more and more family farms and small businesses over time.

Eliminating the death tax would not only provide relief for already grieving families but it would also allow small business investments to rise about 3% annually which would add some 1.5 million jobs to the economy. With the economy still weak and families struggling to get by, I believe we should work towards permanently repealing the death tax and H.R. 4154 is surely a step in the wrong direction."

Source