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  • House Votes to Raise Estate Tax this Week

    The U.S. House of Representative could vote as early as Wednesday of this week to increase the estate tax (known popularly as the death tax). The bill it will consider, sponsored by Rep. Earl Pomeroy (D-North Dakota), would extend permanently the death tax at its current 45 percent rate and $3.5 million exemption. This extension would be a drastic tax increase since the death tax expires on January 1, 2010.

    In addition, the Pomeroy bill would be a repudiation of the policy stands of several past Congresses that all agreed the death tax must go. They came to that conclusion with good reason. Heritage research has shown that the death tax is a severe hindrance to the economy because it:

    • discourages savings and investment;
    • undermines job creation;
    • suppresses productivity and wage growth;
    • contradicts the central promise of American life: wealth creation;
    • hurts those who have their savings tied up in land; and
    • hurts businesses owned by women and African-Americans.

    Its no wonder the latest research shows full repeal of the death tax would create 1.5 million jobs.

    The economy cannot afford an increase in the Death Tax. What it really needs is the boost full repeal of this harmful tax would give. It is time for Congress to do the right thing and kill the Death Tax once and for all.

    As the debate over the death tax continues, you can follow all of the Heritage Foundation’s research on the topic at our new rapid response page http://www.heritage.org/News/Death-Tax.cfm.

    Posted in Economics [slideshow_deploy]

    6 Responses to House Votes to Raise Estate Tax this Week

    1. wanda schmidt - OK. says:

      I think it's a crime or should be for gov. to tax any money that has already been taxed ! they need to be more respectful to the people they are suppost to reppresent and how hard we have to work for are money what give them the right to our savings it belongs to our family & loved ones to help better what is left of their lives they can spend it as well as or better than big gov.! the Gov. has it hands in way to much of our hard earned money as it is & they are mostly reckless & wastefull with it. we do with out so they can give themself another pay raise or bonus or perk !I think they need to pay more of there own way at the top we need to have limits on what the tax payers spend on them & anything above that needs to come out of there own pocket any personel care needs should come out of there own pocket big and faster jets to go to work should be on them not us let them get up a little earlier and fly in a standard plane !

    2. David Shulman, Fort says:

      This is a deliberate misstatement of the facts. This is a tax cut, not a tax hike. I've written more about this at my blog here. http://tinyurl.com/ylz8mg6

    3. Peter Asher, Oregon says:

      What Congress could do if they had a mind to, (double meaning) would be to differentiate between active and passive income. Family farms and businesses build the economy and should be able to be passed on without being diminished or wiped out by needing to come up with an absurd amount of cash.

      Investment portfolios, though, contribute nothing to the general economic welfare (Unless invested in IPO’s) and no jobs or productivity is lost if their value is reduced by taxes.

    4. Seth says:

      I agree with Peter about family farms and businesses being wiped out by needing to come up with cash. The problem I see is that it isn't generally a problem of paying the estate tax. Insurance companies usually have that covered by "second-to-die" insurance. The problem is that insurance companies and tax lawyers who have an interest lobby for the estate tax and then lord it over family businesses.

      Money spent on insurance premiums, setting up trusts, and paying gift taxes could be put back into family businesses so they can hire additional employees. EstateTaxTruth.org estimates that repealing the estate tax could yield more than 1.5 million jobs. If that's true, the federal government would reap the benefits of income taxes from those jobs.

      Am I wrong?

    5. Pingback: Estate Tax Increase a Killer for Family-owned Businesses | The Foundry

    6. Pingback: Most Tweeted Articles by Insurance Experts

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