Hostettler Votes to Deep Six the Estate Tax

HOSTETTLER VOTES TO DEEP SIX THE ESTATE TAX

WASHINGTON, DC - The estate tax, better known as the death tax, is unfair and burdensome and needs to be struck from the Tax Code, U.S. Rep. John Hostettler said today.

Hostettler joined a majority of his House colleagues in passing the Death Tax Repeal Permanency Act of 2005. The bill passed 272-162.

"It's time to give the death tax a proper burial," said Hostettler, a cosponsor of the bill. "Federal taxes are high enough without forcing families to pay them a second time when a loved one dies."

The death tax currently phases-out until it is completely repealed in 2010. However, as a result of Senate Democrat opposition to the 2001 tax relief bill, the repeal sunsets on January 1, 2011, allowing the death tax to reemerge in its pre-2001 form. The Death Tax Repeal Permanency Act makes the repeal permanent so taxpayers can make long-term financial planning decisions that cannot be made under current law.

"The death tax is a burden on the economy, hampers economic growth and job creation, and disproportionally hurts family-owned farms and business," said Hostettler.

The Heritage Foundation estimates that the death tax costs the American economy up to 250,000 jobs annually. Small businesses, which are vital to job creation and growth, are especially vulnerable to the death tax because much of the value of their business is in their estate. The Center for the Study of Taxation estimates that more than 70% of family businesses do not survive the second generation; 87% do not make it to the third generation.

http://www.house.gov/hostettler/News/Hostettler-news-2005-04-13-repeal-death-tax.htm