Smith Votes Against Misleading Estate Tax Bill

Press Release

Congressman Adrian Smith (R-NE) today voted against H.R. 4154, the Permanent Estate Tax Relief for Families, Farmers, and Small Businesses Act, a bill whose text fails to live up to its title. The estate tax - commonly referred to as the "death tax" - is a tax on assets transferred following an individual's death.

Smith, a member of the House Agriculture Committee, has called for a permanent repeal of the death tax and is a cosponsor of H.R. 205, the Death Tax Repeal Act. However, he expressed serious reservations about H.R. 4154, which would permanently extend the excessively high tax rate of 45 percent with an un-indexed exemption amount of $3.5 million currently in effect for 2009. At the 45 percent rate, nearly half of the value of farms, ranches and small businesses would be taxed by the federal government.

"I have long supported a complete and permanent repeal of the death tax because it punishes individuals at their death and, in effect, is a double tax on assets which were already taxed when earned. It disproportionally affects the assets of family-owned small businesses and ag producers which are transferred at the time of death. We had the chance to do this right and I was willing to work with my colleagues to find a solution.

"Unfortunately, Congress did not make the most of an opportunity to permanently repeal the death tax. The bill we passed does not set a reasonable rate, does not provide an appropriate exemption amount, and is not indexed for inflation. More and more agriculture producers are going to face this tax in the future. It is a shame the majority chose to employ a gimmick as a Band-Aid rather than solve the underlying problems which could prove devastating to small, family-owned businesses and agriculture producers," Smith said

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