On Thursday, April 16, AMAC celebrated the passage of H.R. 1105, the “Death Tax Repeal Act of 2015,” by the U.S. House of Representatives. This bipartisan, AMAC-backed bill introduced by Congressmen Kevin Brady (R-TX) and Sanford Bishop (D-GA) promises to permanently repeal the federal estate tax, or “death tax,” and to put to end the immoral double-tax on property transfers that occur upon death.
A key part of the advocacy movement behind the bill, AMAC members helped to achieve this monumental victory for small businesses, families and mature Americans and seniors. In just three days, more than 12,000 AMAC members called and emailed their Representatives, urging them to vote to repeal the death tax once and for all! This outstanding response to the call-to-action campaign played a critical role in conveying AMAC’s message to Congress and securing a positive legislative outcome.
AMAC is very pleased to see Congress take a bold and courageous stand for small business and families, on which the death tax has inflicted substantial harm for many years. Currently, 70 percent of family businesses do not survive to the second generation, and 90 percent do not survive to the third generation. Families hit by the death tax are often forced to sell off land or valuable business assets, lay off workers or even shut down entirely as a result.
While the death tax applies to relatively few Americans and raises only minimal amounts of revenue for the federal government, it imposes significant costs on the American economy in terms of lost jobs and reduced growth rates. It has been devastating to family businesses and the communities in which they operate. In fact, studies indicate that repealing the death tax will actually free up capital for families to expand and grow their businesses and hire new workers. This could lead to increased revenue for the federal government as well as greater prosperity for hard-working Americans long-term.
Moreover, the death tax inflicts tremendous personal pain on families. At a time of great loss and grief, families should not be forced to make difficult choices regarding the future of the property or business they have just inherited. Requiring grieving families to pay a tax on their loved one’s life savings, which have been accrued from income already taxed when originally earned, depicts government overreach at its worst. Families should be given a real opportunity to carry on their loved ones’ legacies by keeping the doors of their businesses open should they so choose.
AMAC firmly believes that death should not be a taxable event. Thankfully, many in Congress agree and have taken the first step to unburdening American business owners and families by passing H.R. 1105. The bill has not yet reached the end of the legislative road, however. H.R. 1105 now advances to the Senate where it will continue to need bipartisan support to become law.
AMAC encourages you to continue to educate and inform your family, friends, colleagues and neighbors about the negative impact the death tax is having on the American Dream. We thank you for your interest in this important American issue and for lending your voice to this vital discussion. It is because of your commitment to conservative principles and your willingness to partake in the democratic process that AMAC is making a difference in Washington.