S. 420, the Death Tax Repeal Permanency Act of 2005, is currently on the Senate Floor. Sen. Jon Kyl (AZ) introduced the bill in February of 2005 and said, “ The death tax is also detrimental to our economy, as it forces businesses to have to pay taxes to the government rather than investing in business growth—even worse, many businesses are forced to sell off the business to pay for the resulting death taxes. We have a responsibility to do whatever is necessary to bring a permanent end to the excessive burden of this tax as soon as we can. ” In fact, a bi-partisan poll found that 69% of Americans support elimination of the death tax.
According to the Family Research Council, a family-owned business can lose up to 55 percent of its assets when it passes from one generation to the next. Because of the death tax, roughly 70 percent of families choose to cash out or abandon their business after just one generation. The Heritage Foundation estimates that the death tax costs the American economy between 170,000 and 250,000 jobs annually.
Under the 2001 tax law (PL 107-16), the death tax is being gradually reduced and will disappear in 2010. But that law is scheduled to expire at the end of 2010, sending the death tax back to its 2001 rate structure. When Congress considered the identical bill, with the same number, in 2003, the House passed the bill, but the Senate drew it back.
As supporting family farmers and small rural business the National Grange's position on the death tax is:
The National Grange supports legislation that would abolish the federal estate tax, especially for small business and agriculture. Until the inheritance tax is gone we want the tax basis for inherited property to be at the current use value and not the prospective development value.
Action Needed:
The House Floor is now considering S. 420 that would repeal the death tax permanently. Please call or email your U.S. Senator to urge them to pass it immediately!
(To find contact information of your U.S. Senate Member, click SENATE)
Sample letter:
(Please feel free to copy and paste this letter in your e-mail )
Dear Sen. __________:
I would like to urge you to pass S.420 immediately to repeal the death tax permanently. As you well know, the average age of a farmer in the US is over 55 years old. Family farmers and small business owners in rural areas are extremely concerned about how they will pass on their business and personal assets to the next generation so that those assets may continue to be used to build strong, and economically viable, rural communities. Please help promote a more efficient and equitable transfer of farm and rural small business assets to the next generation by permanently eliminating the death tax.
Sincerely,
(Signature)
(Name)__________________________
(Grange name and number) __________________________
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If you have any questions or comments please contact Legislative Program Assistant, Peter Banks by e-mail: pbanks@nationalgrange.org by fax: 202-347-1091 or by phone: 1-888-4GRANGE, ext 105.
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