|
House Acts to Permanently Repeal Estate Tax
Legislation passed by the House on April 14 to permanently repeal the estate tax would help small family-owned businesses create more jobs and continue to prosper, according to the nation’s home builders.
“Abolishing the death tax would eliminate one of the greatest threats to the future viability of family businesses,” said NAHB President Dave Wilson. “It means that the heirs of family-run home building companies would no longer have to worry about liquidating company assets to pay for the tax.”
Introduced earlier this year by Reps. Kenny Hulshof (R-Mo.) and Robert E. “Bud” Cramer (D-Ala.), H.R. 8, the “Death Tax Repeal Permanency Act,” was approved by a broad bipartisan 272 to 162 margin.
Under current law that was enacted in 2001, the estate tax is slowly being reduced and will be eliminated entirely in 2010. However, the following year it is resurrected at rates as high as 55%.
While reductions in the tax are welcome, builders would prefer no death tax at all and many are saying that the scheduled cuts in the tax over this decade make planning their estates more difficult. If they don't keep up with changes in the schedule, a significant portion of their estate can be lost to federal taxes after they die.
“Hard-working Americans should not have to pay the federal government more than 50% of their estate at death,” said Wilson.
Noting that small, family-owned businesses generate the lion’s share of job growth in the nation’s economy, Wilson said that the death tax robs those businesses of working capital that could be used to expand and create jobs.
“This issue is of particular importance to the housing industry, which is comprised largely of small businesses. NAHB is pleased to support this important measure rescinding the death tax, and we urge the Senate to act swiftly on companion legislation S. 420,” he said.
To read the legislation, click here, and enter the bill number in the box at the upper left.
For more information, e-mail Michael Strauss, or call him at 800-368-5242 x8252.
|
