Advocacy / AMAC Action In The Media / Politics

Let’s Stand Together On Death Tax Repeal

Dan Weber republicans recess tax death taxBy – Dan Weber, as published in the Daily Caller

Earlier this year, the Association of Mature American Citizens (AMAC) joined 131 other organizations in signing a letter supporting Senator Thune (R-SD) and Congresswoman Noem’s (R-SD) Death Tax Repeal Act of 2017, S. 205 and H.R. 631. This important piece of legislation seeks to protect small businesses and hard-working Americans – especially seniors and their families – from the devastating impacts of the federal estate tax, known more commonly as the “death tax.”

Today, this issue is at the forefront of the national debate on tax reform. Our members have consistently opposed the death tax as an immoral double-tax on family owned business. For 100 years, it has forced family businesses and farms to sell valuable assets and liquidate generations of progress. As a result, the death tax is ultimately responsible for closing the doors of many family businesses, discouraging savings and investments, undermining job creation, while also thwarting economic growth and ingenuity.

We have fought to bring awareness to this issue and its impact on seniors. In the last Congress, more than 12,000 AMAC members called and emailed their Congressman to alert them to the detrimental effects of the death tax. We continue to push our elected now, and ask that they stand with us on HR 631. This tax has long increased costs on small business and threatened their longevity. Currently, 70 percent of family businesses do not survive to the second generation, and 90 percent do not survive to the third generation. Repealing this tax is critical to keeping family businesses intact while also promoting intergenerational savings. Congress’ Joint Economic Committee found that the Death Tax has destroyed roughly $1.1 trillion in capital stock in the economy. As such, the death tax is consistently ranked as the least fair and most unpopular tax in America. Nearly 3⁄4 of Americans believe the death tax should be repealed.

Moreover, it is not an effective revenue generator. The death tax raises only minimal amounts for the federal government, while imposing significant costs on the American economy in terms of jobs lost and reduced growth rates. It has been devastating to family businesses and the communities in which they operate. In fact, ending the death tax would add $119 billion to GDP and boost workers’ income by $79 billion. According to the Tax Foundation, repeal of the death tax would also create nearly 160,000 jobs. This will lead to increased revenue for the federal government as well as greater prosperity for hard-working Americans long-term.

Most importantly, the death tax inflicts tremendous personal pain on families. At a time of great loss and grief, no one should 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 every opportunity to carry on their loved ones’ legacies by keeping the doors of their businesses open.

The AMAC firmly believes that death should not be a taxable event. Thankfully, Congressional leadership has taken steps to unburden American business owners and their families. We ask that they finish the job and protect family businesses and their futures. It is time to stand together and repeal the death tax.

Daniel C. Weber is Founder and Chief Executive Officer of the AMAC.

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Pete from St Pete
5 years ago

I saw Dan Weber on Fox News and pretty much agreed with what he said. However, there is one proposed change in the tax code that could have a serious impact on seniors who really need it: the elimination of medical expenses as a deduction. I have prepared taxes for people who have a modest retirement income and social security but have to live in a nursing home. Under the current code nursing home expenses are one hundred per cent deductible for most people. High nursing home expenses deductibility are usually enough to keep such patients from having to pay any income taxes on what little (if any) on any income left over. Unless there is a provision that I don’t know about, without this deduction these people will owe income taxes on money they had to spend to stay alive. They will probably die paupers owing the IRS taxes. With all the chatter among the talking heads on TV, I have not heard one person even address this situation.

5 years ago

Our very high medical expenses over the last three years ($20,000+ per year) have NEVER been ‘enough’ to deduct anyway! Yes, we have a good income, but this is still quite a burden! It was the same when we covered the several surgeries of our children when they were young and we made about $50k! THE FEDS ARE THIEVES!!!

5 years ago

As Weber has pointed out it’s largely a death of businesses and jobs tax.

5 years ago

Suggestions for U.S. Federal Tax Code Changes:
(1) Give everybody a 5% Individual Federal Income Tax Reduction across the board.
(2) Change none of the current Tax Code Deductions as it pertains to interest and depreciation to Federal Taxation.
(3) Raise the minimum individual tax level before imposing Federal Taxation to $48,000.00.
(4) Double the Individual Child Deduction.
(5) Provide an Individual $3,200.00 Federal Tax Credit for employing first time employees and/or minors.
(6) Reduce all the Corporate Federal Taxation rates to not exceed 15% level.
(7) Allow small individually wholly owned C Corporation’s to be Federally Taxed at an Individual level, at the annualized wish of taxpayers.
(8) Raise the minimum imposition level of Federal Death Taxation due to 10 million; doubling the current minimum Estate Tax level.
(9) Give the Off-Shore Cash a 2% Federal Tax Credit against U.S. Profits; applied on annualized Cash Returned into U.S. Corporations.
(10) Forget any ideas of a 10% tax imposition on Off-Shore Cash returned or not as unenforceable and for the most part not collectable.
(11) Impose a 10% Federal Excise Tax to be added over-an-above current Capital Gains Taxes due on Long Term Sales in Excess of 5million.

Provides a little bit of tax ‘benefit’ and a little bit of ‘suffering’ for everyone.

5 years ago

Wow. This is so detailed only an accountant can understand all of it.
I do not understand what happens when the 12% tax bracket is “phased out.” Does that mean everyone goes to 25% – even the elderly living on small pensions?
Why is the repeal of the death tax 7 years in the distant [changeable] future?
When the Affordable Care Act eats so much of a person’s income, is mandated by our own beloved Federal Government although it fails entirely to supply real CARE and is just a TAX as ruled by the Supreme Court, and thus under the duress of IRS attacks and possible imprisonment, WHY are medical expenses not deductible?
I am pro-Trump but very wary of the greedy megalomaniacs in the House and Senate.
The WSJ calls this half-a-tax reform bill and it may be correct.

5 years ago

Like many things the gov does, the death tax is another abomination and a direct disavowal of the US Constitution, it should have never been instituted and needs to be repealed as do all progressive taxes……Just like this handling of the tax reform, Americans elected representation is to expensive and abused..the US could use a huge political enema……..

5 years ago

While we’re at it, let’s eliminate the gift tax. I work my whole life and pay taxes on my earnings. I spend some of what’s left and pay sales taxes on that. I save or invest the rest and pay taxes on that interest or dividend income. Now, if I want to give some of what is left to a needy relative or friend, the government tells me how much I am allowed to give. Anything over their definition of “enough” is taxed under the gift tax.

Dan W.
5 years ago
Reply to  KLMJSM22

Keep in mind that gifts of up to the annual exclusion of $14,000 per recipient incur no tax or tax filing requirement and by splitting their gifts, married couples can give up to twice this amount tax-free per year to each recipient. Each giver/recipient combination has their own unique annual exclusion; a giver can give to any number of recipients and the exclusion is not affected by other gifts that recipient may have received from others.

In addition, gifts in excess of the annual $14,000 exclusion are tax-free up to the lifetime estate/death tax basic exclusion amount of $5,450,000 although these gifts are counted against the lifetime $5,450,000 estate/death tax exclusion for each giver.

As of 2016, the IRS only requires estates with combined gross assets (and prior taxable gifts) exceeding $5,450,000 to file a federal estate/death tax return and pay estate/death taxes. As a result, if someone has a $5.45 million (or less) estate, there are no estate/death taxes due when that person dies.

5 years ago
Reply to  Dan W.

This money has ALREADY been taxed! This is theft, no matter what federal law states.

5 years ago

This is a perfect example of how the word “tax” in gov-speak, translates to “theft” in the common mans language. We are burdened with this not so much as a revenue generation scam, but because it is one of the principles in the communist manifesto. It is in the communist mindset that sees inheritance of property as a bad thing. All property belongs to “the people” under the benevolent care of the government. Just because you were given use of some property by the benevolent big brother doesn’t mean your kids can continue to use it. That would be like actually OWNING it.

Lee McQuillen
5 years ago
Reply to  Andie

Nicely put!

john koo
5 years ago

The death tax to me is no more than stealing from a person who spent a lifetime building a business or investing wisely to pass on to his family to give them a better life. As usual the government takes from people who work hard and try to succeed in life.What is the incentive when you work hard and at the end of your life government takes fifty five percent of your accumulated wealth which was taxed throughout your lifetime to waste on slugs who contributed nothing to the coffers.

5 years ago
Reply to  john koo

If it’s any comfort the gov has now generously gone up the ladder before committing this theft….LOL

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