Family Business Coalition Urges Congress to Repeal Estate Tax
Family Business Coalition Urges Congress to Repeal Estate Tax
- Institutional AuthorsAMT - The Association for Manufacturing TechnologyFood Marketing InstituteAmerican Wholesale Marketers AssociationInternational Franchise AssociationAmerican Supply AssociationAgricultural Retailers AssociationHeating, Air-conditioning, & Refrigeration Distributors InternationalNational Association of Electrical DistributorsNational Lumber and Building Material Dealers AssociationNational Council of Farmer CooperativesAmerican Trucking AssociationAssociated General Contractors of AmericaWine & Spirit Wholesalers of AmericaNational GrangeAssociated Wire Rope FabricatorsForest LandownersAssociated Builders and Contractors Inc.American Loggers CouncilAmerican International Automobile Dealers AssociationHardwood FederationAssociated Equipment DistributorsNAHAD - The Association for Hose and Accessories DistributionTire Industry AssociationNational Electrical Contractors AssociationWindow & Door Manufacturers AssociationIndustrial Supply AssociationAeronautical Repair Station AssociationAmerican Beverage LicenseesMason Contractors Association of AmericaInternational Foodservice Distributors AssociationISSA - The Worldwide Cleaning Industry AssociationUnited Fresh Produce AssociationWADA Service Station & Automotive Repair AssociationInternational Association of Plastics DistributionUnited States Cattlemen's AssociationInternational Sign AssociationAuto Care AssociationNational Black Chamber of CommerceNational Small Business AssociationInternational Housewares AssociationPetroleum Marketers Association of AmericaNational Funeral Directors AssociationProfessional Beauty AssociationNorth American Meat InstituteService Station Dealers of America and Allied TradesPrinting Industries of AmericaTruck Renting and Leasing AssociationSmall Business & Entrepreneurship CouncilAmerican Foundry SocietyNational Propane Gas AssociationPlumbing-Heating-Cooling Contractors AssociationForest Landowners Tax CouncilNPES - The Association for Suppliers of Printing, Publishing and Converting TechnologiesIrrigation AssociationNational Insulation AssociationHispanic Leadership FundWoodworking Machine Industry AssociationMaterials Handling Equipment Distributors AssociationNational Confectioners AssociationAmericans for Tax ReformAmericans for ProsperityHeritage Action for AmericaClub for GrowthR-Street InstituteCompetitive Enterprise InstituteCenter for Freedom and ProsperityNational Taxpayers UnionLet Freedom RingAmerican Business Defense CouncilFree Congress ActionTaxpayer Protection AllianceAmerican Civil Rights UnionAmerican CommitmentNational Tax Limitation CommitteeAssociation of Mature American CitizensCouncil for Citizens Against Government WasteCampaign for LibertyLess GovernmentAmerican ValuesMaryland Taxpayers AssociationAmericans for Constitutional Action
- Code Sections
- Subject Area/Tax Topics
- Jurisdictions
- LanguageEnglish
- Tax Analysts Document NumberDoc 2015-5299
- Tax Analysts Electronic Citation2015 TNT 43-32
March 4, 2015
Congressman Kevin Brady
301 Cannon House Office Building
Washington, D.C. 20515
Congressman Sanford Bishop
2407 Rayburn house Office Building
Washington, D.C. 20515
Dear Congressman Brady and Congressman Bishop:
The undersigned organizations support your bill, the Death Tax Repeal Act of 2015.
We appreciate your work to lead the country towards a common sense tax code that does not impose a destructive double or triple tax at death. We support full and permanent repeal of the federal estate tax for the following reasons:
Repealing the death tax would spur job creation and grow the economy. Many studies have quantified the job losses caused by the death tax. Last year the Tax Foundation and Heritage Foundation both found that the US could create over 100,000 jobs by repealing the death tax. A 2012 study by the House Joint Economic Committee found that the death tax has destroyed over $1.1 trillion of capital in the US economy -- loss of small business capital means fewer jobs and lower wages. Lawrence Summers, former Secretary of the Treasury under President Clinton; Alicia Munell, member of President Clinton's Council of Economic Advisors; Joseph Stiglitz, a Nobel laureate for economics; and Douglas Holtz-Eakin, former CBO Director have all published work on the death tax's stifling effect on job growth and the economy as a whole.
The death tax contributes a very small portion of federal revenues. The death tax currently accounts for less than half of one percent of federal revenue. There is a good argument that not collecting the death tax would create more economic growth and lead to an increase in federal revenue from other taxes. A 2014 Tax Foundation analysis found repeal of the death tax would increase federal revenues by $3.3 billion per year using a more realistic, "dynamic" economic analysis. In addition, the death tax forces family businesses to waste money on expensive insurance policies and estate planning. These burdensome compliance costs make it even harder for business owners to expand their businesses and create more jobs.
The death tax falls particularly hard on minorities. The death tax threatens to confiscate generational capital from African-American and minority communities. Death tax liabilities bankrupted the Chicago Defender -- the oldest black-owned daily newspaper in the United States -- and will reduce net African-American wealth by 13 percent, according to a study conducted by Boston College professors John Haven and Paul Schervish. According to a 2004 Impacto Group poll, 50 percent of Hispanic business owners know someone who sold their business to pay the death tax and a quarter expect to sell their business because of the death tax.
A super-majority of likely voters support eliminating the death tax. 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.
The negative effects of the death tax make permanent repeal the only solution for family businesses and farms. Your legislation will help America's family businesses create jobs, expand operations, and grow the economy. We thank you for your continued leadership on this important issue.
AMT -- The Association for
Manufacturing Technology
International Franchise
Association
Heating, Air-conditioning &
Refrigeration Distributors
International
National Council of Farmer
Cooperatives
Food Marketing Institute
American Supply Association
National Association of Electrical
Distributors
American Trucking Association
American Wholesale Marketers
Association
Agricultural Retailers Association
National Lumber and Building
Material Dealers Assocation
Associated General Contractors of
America
Wine & Spirit Wholesalers of
America
Forest Landowners
American International Automobile
Dealers Association
NAHAD -- The Assocation of Hose
and Accessories Distribution
Window & Door Manufacturers
Association
Associated Builders and
Contractors, Inc.
Hardwood Federation
Tire Industry Assocation
Industrial Supply Assocation
Associated Wire Rope Fabricators
American Loggers Council
Associated Equipment Distributors
National Electrical Contractors
Assocation
Aeronautical Repair Station
Association
American Beverage Licensees
ISSA -- The Worldwide Cleaning
Industry Association
International Association of
Plastics Distribution
Auto Care Assocation
International Housewares
Assocation
Professional Beauty Assocation
Mason Contractors Assocation of
America
United Fresh Produce Assocation
United States Cattlemen's
Association
National Black Chamber of Commerce
Petroleum Marketers Assocation of
America
North American Meat Institute
International Foodservice
Distributors Assocation
WADA Service Station & Automotive
Repair Association
International Sign Association
National Small Business
Association
National Funeral Directors
Association
Service Station Dealers of America
and Allied Trades
Printing Industries of America
American Foundry Society
Forest Landowners Tax Council
National Insulation Assocation
Materials Handling Equipment
Distributors Assocation
Truck Renting and Leasing
Association
National Propane Gas Assocation
NPES -- The Association of
Suppliers of Printing, Publishing
and Converting Technologies
Hispanic Leadership Fund
National Confectioners Association
Small Business & Entrepreneurship
Council
Plumbing-Heating-Cooling
Contractors Association
Irrigation Association
Woodworking Machine Industry
Association
Americans for Tax Reform
Americans for Prosperity
R-Street Institute
National Taxpayers Union
Free Congress Action
American Commitment
Council for Citizens Against
Government Waste
American Values
Heritage Action for America
Competitive Enterprise Institute
Let Freedom Ring
Taxpayer Protection Alliance
National Tax Limitation Committee
Campaign for Liberty
Maryland Taxpayer Association
Club of Growth
Center for Freedom and Prosperity
American Business Defense Council
American Civil Rights Union
Association of Mature American
Citizens
Less Government
Americans for Constitutional
Action
- Institutional AuthorsAMT - The Association for Manufacturing TechnologyFood Marketing InstituteAmerican Wholesale Marketers AssociationInternational Franchise AssociationAmerican Supply AssociationAgricultural Retailers AssociationHeating, Air-conditioning, & Refrigeration Distributors InternationalNational Association of Electrical DistributorsNational Lumber and Building Material Dealers AssociationNational Council of Farmer CooperativesAmerican Trucking AssociationAssociated General Contractors of AmericaWine & Spirit Wholesalers of AmericaNational GrangeAssociated Wire Rope FabricatorsForest LandownersAssociated Builders and Contractors Inc.American Loggers CouncilAmerican International Automobile Dealers AssociationHardwood FederationAssociated Equipment DistributorsNAHAD - The Association for Hose and Accessories DistributionTire Industry AssociationNational Electrical Contractors AssociationWindow & Door Manufacturers AssociationIndustrial Supply AssociationAeronautical Repair Station AssociationAmerican Beverage LicenseesMason Contractors Association of AmericaInternational Foodservice Distributors AssociationISSA - The Worldwide Cleaning Industry AssociationUnited Fresh Produce AssociationWADA Service Station & Automotive Repair AssociationInternational Association of Plastics DistributionUnited States Cattlemen's AssociationInternational Sign AssociationAuto Care AssociationNational Black Chamber of CommerceNational Small Business AssociationInternational Housewares AssociationPetroleum Marketers Association of AmericaNational Funeral Directors AssociationProfessional Beauty AssociationNorth American Meat InstituteService Station Dealers of America and Allied TradesPrinting Industries of AmericaTruck Renting and Leasing AssociationSmall Business & Entrepreneurship CouncilAmerican Foundry SocietyNational Propane Gas AssociationPlumbing-Heating-Cooling Contractors AssociationForest Landowners Tax CouncilNPES - The Association for Suppliers of Printing, Publishing and Converting TechnologiesIrrigation AssociationNational Insulation AssociationHispanic Leadership FundWoodworking Machine Industry AssociationMaterials Handling Equipment Distributors AssociationNational Confectioners AssociationAmericans for Tax ReformAmericans for ProsperityHeritage Action for AmericaClub for GrowthR-Street InstituteCompetitive Enterprise InstituteCenter for Freedom and ProsperityNational Taxpayers UnionLet Freedom RingAmerican Business Defense CouncilFree Congress ActionTaxpayer Protection AllianceAmerican Civil Rights UnionAmerican CommitmentNational Tax Limitation CommitteeAssociation of Mature American CitizensCouncil for Citizens Against Government WasteCampaign for LibertyLess GovernmentAmerican ValuesMaryland Taxpayers AssociationAmericans for Constitutional Action
- Code Sections
- Subject Area/Tax Topics
- Jurisdictions
- LanguageEnglish
- Tax Analysts Document NumberDoc 2015-5299
- Tax Analysts Electronic Citation2015 TNT 43-32