Lucas Votes to Permanently Eliminate Death Tax

LUCAS VOTES TO PERMANENTLY ELIMINATE DEATH TAX
April 13, 2005

House Kills Tax on Small Businesses and Farms

Washington, D.C.- U.S. Third District Congressman Frank Lucas voted today to permanently eliminate the death tax, which is the tax levied on small businesses and farmers when a loved one dies.

"Dying should not be a taxable event," Lucas said. "People pay taxes on their assets during their lifetimes, so taxing them after they die amounts to double taxation. We need to put this horrendous tax on Oklahoma farms and businesses six feet under."

The death tax is assessed on the estate of a person who dies before the estate is passed on to descendants, at a rate up to 47 percent. The tax cut package that Congress passed in 2001 phased out the Death Tax over nine years. However, under current law, that tax cut package expires in 2011.

"It is every small-business person's dream to one day pass on their life's work to their children," Lucas said. "Whether that business is the family farm or a Main Street institution, it should be passed on to the next generation, not the federal government."

The Heritage Foundation estimates that the Death Tax costs the American economy up to 250,000 jobs annually. More than 70 percent of family businesses do not survive the second generation, and 87 percent do not make it to the third generation.

"We need to give small businesses the opportunity to spend their resources to expand their operations and hire new employees," Lucas said. "Instead of setting aside their resources to plan for the Death Tax."

The House has passed legislation to make the tax cut permanent before, but the legislation has never passed the Senate.
The House passed the bill, H.R. 8, with a vote of 272-162. It next goes to the Senate.

http://www.house.gov/apps/list/press/ok03_lucas/deathtaxhouse05.html