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House Votes to Raise Death Tax

Posted By Curtis Dubay On December 4, 2009 @ 10:30 am In Economics | Comments Disabled

The U.S. House of Representatives voted [1] to permanently extend the death tax at its current 45 percent rate and $3.5 million exemption. This is a significant tax hike since the death tax was supposed to expire on January 1, 2010.

The increase of the death tax is a major blow to the badly weakened economy since the tax is a huge drag on economic activity [2]. It is also a major disappointment for countless family-owned businesses slammed hard [3] by this unfair tax.

Despite passage in the House, the death tax increase is not yet law since the Senate has not acted. Earlier this year it passed a resolution to extend the death tax permanently as well, but at a lower rate and higher exemption level (35 percent and $5 million).

The Senate version would be better for the economy and family-owned businesses, but full repeal would be best. It would put 1.5 million unemployed Americans back to work [4] and lift a heavy burden from families all across the country.

As the debate moves to the Senate, you can continue to find all of the Heritage Foundation’s work on the death tax – including new videos detailing the struggles the death tax imposes on family-owned businesses – at www.heritage.org/deathtax [5].

Article printed from The Foundry: Conservative Policy News from The Heritage Foundation: http://blog.heritage.org

URL to article: http://blog.heritage.org/2009/12/04/house-votes-to-raise-death-tax/

URLs in this post:

[1] voted: http://voices.washingtonpost.com/capitol-briefing/2009/12/house_votes_to_make_current_es.html

[2] huge drag on economic activity: http://www.heritage.org/Research/Taxes/wm2688.cfm

[3] countless family-owned businesses slammed hard: http://www.heritage.org/Research/Taxes/wm2703.cfm

[4] 1.5 million unemployed Americans back to work: http://www.nodeathtax.org/files/AFBF_Holtz_Eakin_2009.pdf

[5] www.heritage.org/deathtax: http://www.heritage.org/News/Death-Tax.cfm

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