Let’s Get Rid of the Death Tax
There are few things in life that seem as unfair as a death tax. After a lifetime of building up your farm or small business, the notion that the federal government is owed anything upon your death is outrageous to me.
In 2001, Congress started down the long road of eliminating the death tax. The taxable rate was reduced each year until 2010, when it was phased out completely for one year. However, instead of ending it once and for all, Congress allowed the rates to increase to 35% for 2011 and 2012. If Congress does nothing, the rate will increase to 55% on January 1st.
The current estate tax was enacted in 1916 to help pay for World War I. Like many taxes, it was meant to be temporary. Initially, the top rate was just 10 percent, but it never did go away.
Many small businesses or farms do not have cash to tax, but assets, like machinery or land. Many of those assets have already been taxed once in life. Death should not be a taxable event. Families should be able to pass down a family farm or business without Washington levying another tax.
When a loved one passes away, taxes are the last thing a family needs to worry about. According to a study by the Joint Economic Committee, the Death Tax is the number one reason family businesses do not survive from one generation to the next. I believe it's time to bury the death tax once and for all.
Sincerely,
