Repeal The Death Tax

America’s family businesses and farmers were hit by a large estate tax increase, from 0% to 35%, at the beginning of 2011, making planning and passing on farms and businesses to the next generation even more difficult. As it stands, more than 70% of family businesses do not survive to the second generation, and a full 90% of family businesses do not survive to the third. In 2011, the political landscape has changed but family businesses are still struggling, family farms are liquidating, and even more jobs are at stake.

You can help extend relief to family businesses and farms by cosponsoring the bi-partisan Rep. Brady/Ross bill, H.R. 1259 ‘‘Death Tax Repeal Permanency Act of 2011’’ to permanently eliminate the burdensome estate tax. In this poor economic climate, where small businesses have borne the brunt of job losses, permanent death tax repeal provides an immediate means to turn the tide on this problem and begin adding jobs back to the most productive sector of our economy. The death tax accounts for less than 1% of federal revenues and is an unnecessary drain on America’s job creators.

Please cosponsor H.R. 1259 ‘‘Death Tax Repeal Permanency Act of 2011’’ and vote in favor of death tax repeal for the following reasons:

Repealing the death tax would spur job creation. According to a recent study by Douglas Holtz-Eakin, Ph.D, former Director of the Congressional Budget Office, repealing the death tax would create 1.5 million additional small business jobs. It would shave almost a percentage point off the unemployment rate.

The death tax contributes a very small portion of federal revenues. According to the Office of Management and Budget, the death tax only collected 6/10 of one percent of all federal tax revenues in FY 2009. There is a good argument, in fact, that not collecting the death tax would lead to higher economic growth and thereby increased federal revenue from other taxes. Former undersecretary of the Treasury, Steve Entin, found that H.R. 1259 would increase tax revenues by nearly $89 billion over 10 years using a “dynamic” economic analysis.

As a proud member of the Tea Party movement and TheTeaParty.net I join with more than 50 other conservative organizations in strong support of HR 1259 the permanent repeal of the "Death Tax." I demand that you support repeal of this strongly regressive tax that hurts hardworking American families!

The death tax falls particularly hard on minorities. African-Americans have just in the last generation started accumulating generational capital, but the death tax threatens to confiscate it. Death tax liabilities bankrupted the Chicago Daily Defender – the oldest black-owned daily newspaper in the United States and will reduce net African-American wealth by 13%, according to a study conducted by Boston College professors John Haven and Paul Schervish. According to a 2004 Impacto Group poll, 50% of Hispanic business owners know someone who sold their business to pay the estate tax and a quarter expect to sell their business because of the estate tax.

The death tax promotes the concentration of wealth. Joseph Stiglitz, one of President Clinton’s economic advisors, has argued that the estate tax “may actually increase inequality.” This argument is backed up by economist Antony Davies, Ph.D, who found that the average annual increase in the death tax burden has resulted in an additional 6,000 small businesses being eliminated or absorbed into large conglomerates.

Poll after poll has indicated that a super-majority of likely voters support repealing the death tax. Typically, two thirds of likely voters support full and permanent repeal of the death tax. People instinctively feel that the death tax is not fair.

The death tax is unfair. It makes no sense to require grieving families to pay a confiscatory tax on their loved one’s nest egg. Often, this tax is paid by selling family assets like farms and businesses. Other times, employees of the family business must be laid off and payrolls slashed. No one should be punished for fulfilling the American dream.

'We The People' Demand that you support HR 1259 and the permanent repeal of the "Death Tax"!

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