Friday January 30, 2009
Estate Taxes
|
| Invest In America Act |
| Tax Code Termination Act |
| Growth Act |
Audio:  |
| Action On Taxes |
| Related News Releases |
Estate taxes have placed an unfair burden on American families, especially our nation's farmers and small business owners. It is a tragedy that some of Idaho's families are forced to sell their farms or small businesses simply to pay federal estate or "death" taxes. The liquidation of these productive assets to finance estate tax liabilities eliminates jobs and destroys families. I have long been a supporter of eliminating the estate tax.
Despite the initial exemption, many small businesses and family farmers are forced to liquidate assets to cover a portion of estate tax costs. It is not right for family-owned farms and businesses to be forced to sell assets to pay off the government. For this reason, the Idaho Farm Bureau and the Idaho office of the National Federation of Independent Businesses have historically supported this important legislation. Senator Crapo joins other Members of Congress to toss the U.S. Tax Code into Boston Harbor, re-enacting the 1773 Boston Tea Party. Due to environmental regulations in the harbor, the tax code had to be placed into a retrievable ice chest before it was tossed.
On June 7, 2001, the President signed into law a $1.35 trillion tax cut relief bill that provides across-the-board tax relief. The law also reduced the marriage penalty, doubled the child credit, and provides retirement savings incentives. Through eliminating the death tax, family-owned farms and businesses are protected from unfair taxation due to a death. This tax is an ineffective, distorted tax, and its elimination encourages business growth and job creation. By raising the unified credit to $1 million, over 50 percent of Idahoans were removed from paying any death tax, saving small business and family farms from even filing this onerous tax.
Due to previously set budget rules, a sunset provision was added that revokes the provisions made in the bill in ten years if Congress does not make them permanent. The estate tax will be fully repealed in 2010, and unless Congress takes further action, the death tax will be reinstated in 2011, with the 2001 tax rate of 55 percent back in effect. I am cosponsor of legislation to make permanent estate tax relief, and I look forward to supporting it when considered by the full Senate.
 |