Aderholt Votes to Make Death Tax Repeal Permanent

Aderholt Votes to Make Death Tax Repeal Permanent

It's time to bury the death tax for good. The death tax is one of the most unfair taxes on the books. It's a form of double taxation that is especially hurtful to Alabama's farmers and small business owners," said Congressman Aderholt.

WASHINGTON, April 13, 2005 -- Congressman Robert Aderholt (R-Haleyville) today joined 271 of his House colleagues in voting to make the elimination of the "Death Tax" permanent. Congressman Aderholt cosponsored the Death Tax Repeal Permanency Act of 2005 (H.R. 8), which passed the House 272 to 162 and now moves to the Senate for consideration. In 2001, Congress passed legislation, cosponsored by Congressman Aderholt, that began phasing out the death tax until 2010. The legislation passed today would make the 2001 law permanent and prohibit the tax from being re-established in 2011.

First, small business owners and farmers pay their taxes. Then, the federal government taxes the value of their property again at the time of their death. It's unfair - no one should have to visit the I.R.S. and the undertaker on the same day," said Congressman Aderholt.

Small, family-owned businesses are especially vulnerable to the "Death Tax" because most small-business owners have the entire value of their business in their estate. Research shows that more than 70% of family businesses do not survive the second generation, and 87% do not make it to the third generation.

Under the tax laws that we currently have, it is cheaper for someone to sell a business before dying and pay the capital gains tax than to pass it on to their children. This tax is unfair and I am proud to have voted to eliminate it," added Congressman Aderholt.

BRAKE IN TRANSCRIPT

http://aderholt.house.gov/HoR/AL04/Newsroom/News+Releases/2005/Death+Tax+Vote+4-13-05.htm