Says Ending “Death Tax” Key To Protecting Rural Economies

WASHINGTON, DC – Congressman Mac Thornberry (TX-13) today introduced the ‘‘Death Tax Repeal Act’’ a bill to permanently repeal the federal estate tax.  “Family owned businesses, farms and ranches are the foundation of the rural economy,” said Thornberry.  “As Congress debates new ideas on how to encourage economic growth we ought to follow the old maxim ‘first do no harm’ and make sure that the existing temporary reduction in the estate tax is not allowed to expire, returning the Death Tax rate to 55% on January 1, 2011.”

“It is ironic that some in Congress have put forth lengthy and complicated plans to stimulate the economy through a massive government spending program, but have yet to consider my simple, two page bill to protect one of America’s most important means of capital formation, building a family enterprise,” noted Congressman Thornberry.  “The estate tax is estimated to have raised about $22 billion dollars or about one percent of federal tax receipts in 2002.  Economists estimate that the federal estate tax depresses the number of jobs by 170,000 to 250,000 each year, meaning repealing the Death Tax is a much more efficient way of creating jobs than borrowing and spending $1 trillion.”

“With 18 original cosponsors for my bill I am hopeful that others in Congress are open to an honest examination of how capital formation and job creation actually occur for farms, ranches, and small businesses of all kinds,” concluded Congressman Thornberry.  “With small business typically providing two-thirds of the job growth in our economy repealing the Death Tax would be one of the simplest and most cost effective ways of protecting the economy of rural America.”