Death Tax Repeal Passed In The House
The House of Representatives voted today to repeal the Death
Tax. The house
1105) called the “Death Tax Repeal Act of 2015”
would amend the Internal Revenue Code of 1986.
A similar bill (S.
860) is making its way through the Senate.
The death tax is also called the estate tax or inheritance
The death tax mandates taxes be paid on the estate of loved
ones who passed away.
This particularly impacts small business owners whose
wealth is tied up in their business assets.
When they die and their estate is passed on to their
loved ones a tax is imposed on the value of that estate.
The current law requies that the tax kick in if the
value of the estate exceeds $5,430,000 for single
individuals and $10,860,000 for couples.
Paying the tax often means selling the assets of the
business in order to raise the money.
As a result small businesses have been forced to sell
or liquidate the assets in order to pay the tax.
A small business owner Karen Modina, Chief Financial Officer
testifies how the death tax forced her
to shut down parts of the company, lay off workers and
The Family Business Coalition which represents 82 businesses
associations across a wide range of industries supports the
repeal of the Death Tax.
They cited widespread support from both sides of the
isle. They also
point to studies that show repealing of the death tax would
spur job creation and grow the economy by over 100,000 jobs.
They point to a study by the House Joint Economic
Committee which found that the death tax has destroyed over
$1.1 trillion of capital in the U.S. economy.
If passed in the Senate and sent to the White House the
President plans to veto it.
Family Business Coalition
Karen Modina Testimony