Members of PA Congressional Delegation Back Elimination of Federal Death Tax

Press Release

Keystone State lawmakers, led by U.S. Senator Pat Toomey, are working to protect family-owned farms and businesses through common-sense tax reform.

U.S. Senator Pat Toomey and U.S. Representatives Lou Barletta, Ryan Costello, Mike Kelly, Pat Meehan, Scott Perry, Keith Rothfus, and Glenn "GT' Thompson have co-sponsored legislation to permanently repeal the federal estate tax, better known as the death tax, to finally put an end to a punitive tax on family farms, and businesses upon the death of an owner.

"Prior to joining Congress, my brothers and I owned a small chain of restaurants in the Lehigh Valley and Lancaster County," said Sen. Toomey. "I know the hard work family farmers and business owners put in every day. That's why I want to make sure that when the owner of a family farm or business passes away, grieving family members are not forced to sell the farm or business to pay this harmful tax. The death tax punishes a lifetime of hard work and I am proud to support this legislation and urge both chambers of Congress to act quickly."

"I grew up as part of a family business, and then later started my own, so I know how much families want to pass on their life's work to the next generation," said Rep. Barletta. "In too many cases, the death tax would make it impossible to do that. Death should not be a taxable event."

"Instead of incentivizing small business owners to create and build something to last, this untimely tax forces our job creators to curtail investment and savings in order to avoid passing a substantial tax burden onto their children and future generations," said Rep. Costello. "I support the effort to abolish the federal "death tax' because it is the last thing family owned businesses should worry about following the death of a loved one or a business owner."

"The story of America is one of men and women working hard and sacrificing to provide a better life for their children and grandchildren," said Rep. Kelly. "The death tax intrudes on that story and is an assault on our national character. Whether it's a mother's savings, a father's business, or a family's farm, the government should not be inheriting what rightly belongs to successive generations."

"No grieving family should have to give up their business or farm to pay their tax bill," said Rep. Meehan. "Repealing the death tax will help family-owned businesses and farms survive, grow and continue to create jobs under the stewardship of future generations."

"The death tax prevents many family farms and businesses - which can be cash poor while still possessing significant value - from being passed on to the next generation," said Rep. Perry. "It's unjust for government to interfere with the right of every American to work hard and build a legacy for their loved ones."

"For years, the misguided death tax has threatened the future of family farms and small businesses, the very engines of job creation," said Rep. Rothfus. "It is past time to repeal the death tax and provide family-owned businesses and farmers with peace of mind and the certainty they need to continue on for generations to come."

"Last month I was proud to receive the 60 Plus Association's Benjamin Franklin Award for my continued support to repeal the so called death tax," said Rep. Thompson. "American families should be able to work hard and save without having to worry about their assets being passed on to future generations. This unjust, federal tax particularly hurts small business owners, farmers, and ranchers and I remain committed to its repeal."

Currently, more than 70 percent of family businesses do not survive to the second generation, and 90 percent of family businesses do not survive to the third generation. According to a study by former CBO Director Douglas Holtz-Eakin, the elimination of the Death Tax would create 1.5 million additional small business jobs and would shave almost a percentage point off the unemployment rate.