Today the House Committee on Ways and Means voted to approve H.R. 1105, the Death Tax Repeal Act of 2015, introduced by Representatives Kevin Brady (R-TX) and Sanford Bishop (D-GA). Supporters say the tax hurts America’s farmers, ranchers and small businesses while robbing the economy of $1.1 trillion in capital and generating barely enough revenue to cover one day of Washington spending.
Congressman Brady stated before the Committee, “The Death Tax is the wrong tax at the wrong time and hurts the wrong people. It’s the number one reason why family-owned businesses aren’t passed down to the next generation. It is Washington’s most immoral and calculated attack on the American Dream.”
Congress’ own Joint Economic Committee reported that the Death Tax motivates wealth holders to reduce savings and increase spending now, rather than pass it on to the next generation, increasing the consumption gap between the wealthy and poor in America.
The Death Tax also unfairly targets women and minority-owned small businesses in America who are building wealth often for the first time. Robert Johnson, founder of BET, recently wrote to the Committee, the Death Tax “continues to pose a serious threat to the likelihood that present-day African American-owned businesses can be preserved as part of a family’s long-term legacy.” A study by Boston College professors estimates the Death Tax could rob African-American households of up to a quarter-trillion dollars of wealth over the first half of this century.
Brady added, “We need American entrepreneurs and family businesses to close that serious jobs gap. But as our committee witnesses made clear, instead of hiring more workers and investing in their business the Death Tax diverts their precious dollars and time to estate planning – millions of dollars and hours. Imagine if all of that could have been invested in new jobs and business opportunities?”
To view Congressman Brady’s full statement before the House Ways and Means Committee click here.