FOR IMMEDIATE RELEASE
Thursday, June 8, 2006

Isakson Voices Disappointment Over Senate’s Failure to Eliminate Death Tax  

WASHINGTON – U.S. Senator Johnny Isakson (R-Ga.) today expressed disappointment when the Senate refused to proceed with debate and allow an up-or-down vote on permanently repealing the estate tax, also known as the "death tax." The procedural vote failed 57 to 41. Senate rules required 60 votes to proceed, ending consideration of the legislation for now.

“We charge people income tax when they earn income. With what is left they make investments, and then as those investments pay dividends or pay income, we tax that. Then we say when you die we want half of that asset,” Isakson said. “It is wrong. It is wrong for individuals, it is wrong for family farmers, it is wrong for landowners and it is wrong for America.”

The President’s 2001 tax package phased out the estate tax over ten years. Unfortunately, the legislation contained a sunset provision that reinstated the tax at the end of that period. This makes long-term estate planning and retirement planning virtually impossible, since the tax code changes so radically at the end of the ten-year period.

“When the tragedy of death comes, family members are immediately confronted with one of the most punitive and confiscatory taxes that has ever been devised in the history of taxation,” Isakson said. “A full repeal of the estate tax will let our hard-working taxpayers pass along their savings to their children and grandchildren tax-free. That’s good for families and small businesses, and it’s good for our economy. I will continue to do everything I can to see that we take action and repeal the death tax permanently.”

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