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  • House Votes to Kill Job Creation Again

    The Washington Post reports:

    The House approved Thursday a measure making the current estate tax rate permanent, overcoming the objections of an unusual coalition of liberal and conservative critics.

    The bill passed, 225 to 200, with 26 Democrats joining all Republicans present to vote no. It would make permanent the current estate tax rate of 45 percent, with an exemption of $3.5 million per individual. If Congress does not act, the estate tax would disappear altogether in 2010, then return in 2011 under the higher rates — 55 percent and a $1 million exemption — that existed before President George W. Bush took office.

    We understand that the leftist majority in the House harbors a long and deeply held desire to redistribute wealth in the country. But as we have explained before, the Death Tax is a killer for family-owned businesses and their workers:

    A recent study found that a full repeal of the death tax would create 1.5 million jobs. This is half the number of jobs President Obama claimed the $800 billion stimulus package would create–at one-fifth the price.

    Additional benefits from full repeal of the estate tax include:

    * Increasing small business capital by over $1.6 trillion;
    * Increasing the probability of hiring by 8.6 percent;
    * Increasing payrolls by 2.6 percent;
    * Expanding investment by 3 percent; and
    * Slashing the current jobless rate by 0.9 percent.

    The unemployment rate is already 10.2%. How high must the unemployment rate go before the left abandons their redistributionist fetish and allows for some pro-growth economic policy?

    Posted in Ongoing Priorities [slideshow_deploy]

    18 Responses to House Votes to Kill Job Creation Again

    1. Freedom of Speech, T says:

      And, the tax rape continues.

      Way to go Woodrow Wilson! That 16th Amendment sure is a great thing, isn't it?

    2. Bobbie Jay says:

      The collective corrupting clowns are initiating the unemployment crisis. Their goal is to increase unemployment as high as they can, to force desperation on the people. They impose needless regulations, mandates and tax increases and then point the finger at the business owner.

      The death tax is immoral but collective corrupting clowns know no difference between moral and immoral. Moral to them is aborting a fetus…human life, brought on by personal behaviors and force the expense on innocent tax payers. Moral to collective corrupting clowns is to keep people weak and weaken the strong.

    3. Ron in Denver says:

      At the age of 68 my wife and I have been very concerned for several years about what a democratic Congress might try to do with President Bush’s tax cuts, particularly the estate tax. Now, they have made a HUGE mistake! Even though I am a life-long Democrat, I am absolutely appalled at the stupidity and arrogance of the current liberal-socialist leaders of my party reverting back to the old “tax & spend” habits of the past and ignoring trying to rebuild our economy. With the democrats now again going after small business owners like us and in effect trying to redistribute what wealth that my wife and I have been able to accumulate during our lifetime, they have lost my vote, period. I will definitely work hard to vote everyone of them out of office at election time. They are not leaders they are thieves!

    4. Pingback: CBC Threatens ‘Actions’ against Obama over unemployments; Pelosi claims Socialism’s failures are Bush’s Fault! hahaha « VotingFemale Speaks!

    5. Dennis TX says:

      Not a day goes by that this administration and The democratic congrees doesn't stare us down and say ( Make my day ). I sure hope we don't disappoint them in 2010.

    6. Joel in San Diego says:

      I think this is good news. They could have let it revert, and the changes in the last decade are a great improvement. The increase of the exemption to $3.5m exempts a lot of people, and it seems like we're not going to lose this.

      Don't exaggerate and present it in apocalyptic terms. Progress is progress, and additional progress can make (whether or not it's abolished) when one or both houses go GOP in 2010 or 2012.

    7. Mary,Cleveland, OH says:

      This is bad news Joel. More jobs will be lost.

    8. Peter Asher, Oregon says:

      Joel: Agreed!

      The next step would be to differentiate between active and passive income.

      Family farms and businesses and those where all partners are hands on participants, should at any value, be able to be passed on without being diminished or wiped out by needing to come up with an amount of cash that would cause them to liquidate productive assets.

    9. Don in Dallas says:

      Making the estate tax permanent with a $3.5 million exemption and a 45% maximum rate would be a tremendous improvement over the status quo. If Congress does not take any action, then for those dying in 2010 there will be no federal estate tax (which is good), but in its place will be a complicated carry-over basis scheme for income tax purposes that is unworkable. Worse yet, the estate tax would be reinstated in 2011 with a $1.0 million exemption (with COLA increases since 2001, so that the actual exemption will likely be in the range of $1.5 million) and a maximum 55% tax rate. While eliminating the estate tax would be great, making the current exemption and rate permanent is not a bad step.

    10. Franklin O'Tool says:

      Would Don Corleon take 45%?

      Not if he wanted to run a successful enterprise.

    11. Bobbie Jay says:

      It's STOLEN money, DON!

    12. Bobbie Jay says:

      HOW GREAT IS THAT???

    13. Freedom of Speech, T says:

      Dear Don Dallas,

      Which is exactly why there should be NO estate tax. Ya can't even leave this world without greedy political parasites attaching themselves to your wealth.

    14. Winghunter says:

      Yeah, I understand the Comrade In Chief and his Politburo majority in Congress. Every good card carrying Communist is taught, and teaches, that redistribution of wealth and racial reparations(Stimulus) is worth more than actually creating permanent jobs no matter how quickly it destroys America.

      Restaurants are already changing the menus from Eggs Benedict to Eggs Obama.

    15. Jon, California says:

      The estate tax, of course, should be eliminated. Period. It is not a fair means of taxation, and is what put Europe into a totally dismal state in the past century.

      I am surprise, however, that our Congress kept the rate at 45% with a $3.5M exemption. For a bunch of liberals with lots of anger to take out on business – they were somewhat restrained.

      The irony to all of this is that President Obama is raising taxes left and right only to squander the money on programs that do not work or create an overly-entitled society. I hope we all work hard to vote him out in 2012 – though he seems to be doing a good job of that all on his own these days.

    16. Chris, Atlantic City says:

      Economic consequences aside, I have yet to hear a justification for the Death Penalty. A father pays taxes for 70 years on the wealth he earns and saves and ultimately gives to his children. Then the day he dies the Gov't takes 45% of it.

      Fortunately there are ways around this thievery: Trusts, Gifting, etc.

      Here's a thought: If the evil wealthy are forced to pay a larger share of the tax burden why don't they get a larger share of Gov't services?

    17. john flathe,pompano says:

      Some of you are missing the point.The very principal of the death tax is wrong.We cant let the discussion be focused on deciding how much money we take from any individual who has earned it and paid taxes on it. It is not our right to tell a family how much they can keep of their own money!! The tax needs to be defeated period–arguing about exemption amounts and % of tax is a very slippery slope.

    18. Freedom of Speech, T says:

      With all due respect to varying opinions, everyone is missing the point. Everyone is falling into the same old trap.

      For example, If I take $20 from you, I'm already way ahead. The government has you arguing about whether they will give you bacj $5 or $10 of your money that they took in the first place. This is the tactic they always use. It's like they are doing you a big favor or something?

      The tax is morally wrong – period. That is what people should be writing their politicians about. The 16th Amendment has been morphed and abused into a repressive monster – and the American people have allowed it.

      By the way, I will not gain from this estate tax in any form. That is not the point. I am concerned about ALL taxes because it has gotten out of control. It is the most powerful hammer the government has over the people. It is pure power and everyone should be outraged.

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