Washington, Oct 10, 2007 -  

U.S. Congressman John Carter (TX-31) today voted in favor of a permanent repeal of the death tax as a motion-to-recommit to the “Tax Collection Responsibility Act.” The proposal, offered by Congressman Kenny Hulshof (R-MO), is identical to the bill introduced in the 109^th Congress, the Death Tax Repeal Permanency Act (H.R.8), which passed the house by a vote of 272-162.

“It’s time we kill the Death Tax once and for all,” Congressman Carter, a longtime opponent of the Death Tax, said.

“I believe that the hard-earned money of the citizens of this nation is just that, their own. A small business or family should be able to decide where their life’s savings goes after they are deceased,” Carter continued. “We must eliminate the Death Tax so that hard working American families can pass on their farms and small businesses to the next generation.”

Under a 2001 tax relief law, the federal Death Tax is being gradually phased-out-until it is eliminated completely in 2010. Because of Senate procedural roadblocks, however, the Death Tax will only be gone for one year, coming back to life again in 2011. That means when small business owners, farmers, and other American working families wake up on New Year’s Day 2011, they’ll be subject to one of the more burdensome taxes on the books today. It also means that it is nearly impossible for families to make long-term financial decisions related to the Death Tax because they do not know when they are going to die.

“Across the street from my church is a 400 acre farm. A second generation family is farming that land, but because of the growth in our county and the increase in land value due to development, the third generation of this family will have pay large amounts of money in taxes just to have the opportunity to continue this family’s farming tradition.” Carter said. “These taxes the third generation will have to pay are in addition to the taxes the first and second generations already paid on this land.”

Prior to 2001, the top Death Tax rate was 55 percent. Today, the highest rate is 45 percent.

“A permanent repeal of the Death Tax will ensure that small businesses and family farms are never again subject to these unfair rates of taxation,” Carter concluded.

Unfortunately, the motion-to-recommit that would have permanently repealed the death tax failed by a vote of 196-212.