Rep. Ruppersberger Votes to Repeal Burdensome Estate Tax
Washington, DC - Today, Congressman Ruppersberger fulfilled a campaign promise by voting in favor of H.R. 8, the Death Tax Repeal Permanency Act. The bill ensures that farmers and small businesses will have the opportunity to pass their businesses along to their families, and eliminates the costly burden of estate planning.
"No American should be forced to sell off part or all of their business or their farm to the government in form of taxes when they die," said Rep. Ruppersberger, "Repeal of the death tax will make it easier for parents to hand-down their businesses and farms for generations to come."
Under the provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001, the estate tax is scheduled to be repealed in 2010 but reinstated in 2011. The purpose of H.R. 8 is to make the repeal of the estate tax permanent, by phasing out the death tax over 10 years beginning in 2001.
Currently, a family-owned business stands to lose 55% of all its assets when it passes from one generation to the next. Because of this tax, 70% of families choose to cash out or abandon their business after just one generation, and only 13% survive into a third generation.
Ninety-nine percent of U.S. farms are owned by individuals, family partnerships or family corporations. Estate-tax laws often force the sale of family farms rather than allowing future generations to continue farming. Furthermore, Small family businesses are forced to waste valuable time and resources preparing for a tax bill instead of investing in their business and their employees.
Small businesses and family farmers are vital to America's economic growth. Without total and permanent repeal the estate tax will continue to threaten the future of family farms, ranches, and businesses.
For more information, contact Heather Moeder Molino at (202) 225-3061