Washington, D.C. - Today Rep. Rick Larsen (WA-02) voted to repeal the estate tax citing concerns about the burden the tax places on family-owned small businesses.

“At the time of its passage in 1916, the estate tax was necessary and effective tool to close the gap between the very rich and the growing middle class,” Larsen said.

“The booming 1990’s economy grew to extend opportunity and wealth to all Americans.  Now the growing middle class is the one impacted by the estate tax,” he added.

Larsen cited several family-owned small businesses that would be hit hard by the estate tax.  Gigi Burke, Vice President of Crown Distributing, employs 140 people in Arlington, Washington.  As the fourth generation owner of the business, Ms. Burke shared her concerns about selling the family business if her parents passed away.  “Estate taxes or a forced sale would have a huge negative impact on our family, each of our employees and the community,” she said.  

Leo Roozen, President of Washington Bulb Company, Inc. in Mount Vernon, Washington, noted that most of his company’s assets are tied up in capital and not cash.  “We cannot pay estate taxes with tractors, trucks and greenhouses,” Roozen said.  As a result, to Roozen, paying the estate tax means selling the business.

“We need a simple, fair and progressive tax system,” Larsen said.  “At the time of its passage, the estate tax was the most progressive tax.  The estate tax is no longer about the wealthy.  Now its impact is more likely to fall on the backs of our neighbors.”