Rep. Palmer voted today for H.R. 1105, the Death Tax Repeal Act, and gives the following statement:
"The bill we passed today would permanently eliminate the death tax. This is long overdue. The death tax presents a significant danger to family farms and other small business. The death tax, originally created to fund the World War I, was intended to be temporary. I doubt it was ever good policy, but in any event, the purpose for it has long passed and it is time it meet its permanent end."
"After her father was killed in a tragic farming accident, my colleague, Rep. Kristi Noem (R-SD) had to drop out of college and take out a large loan to save her family farm from the death tax. It affected nearly every decision her family made for a decade. This should never happen.
"I have worked behind the scenes for repeal of the death tax for almost 20 years. Today was my first opportunity to step forward and cast a vote for full and permanent repeal. This legislation also lowers the rate of the gift tax from 40 percent to 35 percent. Reducing it five percent is a good start, although it should be even lower."
Currently, the death tax is a 40 percent tax on an individual's transfer of assets upon their death. The death tax has forced small businesses and family farms to have to sell all or part of the business or farm, lay off workers, or take out large loans, to pay the tax. The tax amounts to double taxation, since the money has already been taxed in the regular course of business. It is the fourth highest death tax in the world. Countries like Australia and Canada have no death tax.