Hensarling Opposes Phony Death Tax Reform

Hensarling Opposes Phony Death Tax Reform

Congressman Jeb Hensarling, Vice Ranking Member of the House Budget Committee, issued the following statement regarding the passage today of the Permanent Estate Tax Relief for Families, Farmers, and Small Businesses Act of 2009:
"Instead of permanently establishing a 45% death tax rate and calling it reform we should be eliminating it entirely.
"The federal death tax affects all Americans by providing a disincentive to create jobs and grow a business. I recently heard from Gabriel and Jane Ojeda, who are the owners of a small manufacturing company in Mesquite, Texas. They eventually want to pass the business on to their son.

"At a time when unemployment is above 10% -- the highest rate in a generation -- job creators are being told they can only avoid the death tax if they do not grow and hire more workers; so as long as the death tax is part of the tax code, Uncle Sam is saying to job creators, such as the Ojedas, "Don't compete, don't grow, don't prosper because we will take 45% of your success if you do.'

"The death tax undermines one of the most central ideals of American life, the idea that if you work hard, save, and are financially prudent, you and your children will be able to enjoy the fruits of your hard work.

"As the father of two young children, my number one goal in life is to make sure their futures are secure. I, like every American, want to be sure that the things I leave for my children end up with my children, not the IRS. The death tax should not be altered; it should be put to death."

The Permanent Estate Tax Relief for Families, Farmers, and Small Businesses Act of 2009 passed the House on December 3, 2009 by a vote of 225 to 200.

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