111 groups support a Senate vote on Death Tax Repeal Act of 2015
The undersigned organizations support a Senate vote on H.R. 1105, the House passed Death Tax Repeal Act of 2015.
The House of Representatives passed Congressman Brady’s (R-TX) Death Tax Repeal Act of 2015 on a bipartisan basis last April which marked the first time in ten years that either body of Congress was put on the record on this important issue. This year, we urge the Senate to take the next step in the legislative process by bringing the House passed legislation to the floor for a vote. Senator Thune’s (R-SD) mirror legislation to the House passed bill, S.860, has already amassed support from the majority of the Republican caucus. We support full and permanent repeal of the federal estate tax for the following reasons:
Repealing the death tax would spur job creation and grow the economy. Many studies have quantified the job losses caused by the estate tax. A recent Tax Foundation study found that the US could create over 150,000 jobs by repealing the estate tax. A 2012 study by the House Joint Economic Committee found that the estate tax has destroyed over $1.1 trillion of capital in the US economy — loss of small business capital means fewer jobs and lower wages. Lawrence Summers, former Secretary of the Treasury under President Clinton; Alicia Munell, member of President Clinton’s Council of Economic Advisors; Joseph Stiglitz, a Nobel laureate for economics; and Douglas Holtz-Eakin, former CBO Director have all published work on the estate tax’s stifling effect on job growth and the economy as a whole.
The death tax contributes a very small portion of federal revenues. The estate tax currently accounts for less than one percent of federal revenue. There is a good argument that not collecting the estate tax would create more economic growth and lead to an increase in federal revenue from other taxes. A 2016 Tax Foundation analysis found repeal of the estate tax would increase federal revenues by $3.3 billion per year using a more realistic macroeconomic analysis. In addition, the estate tax forces family businesses to waste money on expensive insurance policies and estate planning. These burdensome compliance costs make it even harder for business owners to expand their businesses and create more jobs.
The death tax falls particularly hard on minorities. The estate tax threatens to confiscate generational capital from African-American and minority communities. Estate tax liabilities bankrupted the Chicago Defender – the oldest black-owned daily newspaper in the United States – and will reduce net African-American wealth by 13 percent, according to a study conducted by Boston College professors John Haven and Paul Schervish. According to a 2004 Impacto Group poll, 50 percent of Hispanic business owners know someone who sold their business to pay the estate tax and a quarter expect to sell their business because of the estate tax.
A super-majority of likely voters support eliminating the death tax. Poll after poll has indicated that a super-majority of likely voters support repealing the estate tax. Typically, two-thirds of likely voters support full and permanent repeal of the estate tax. People instinctively feel that the estate tax is not fair.
The death tax is unfair. It makes no sense to require grieving families to pay a confiscatory tax on their loved one’s lifetime savings. Often this tax is paid by selling family assets like farms and businesses. Other times, employees of the family business must be laid off and payrolls slashed. No one should be punished for fulfilling the American dream.
The negative effects of the estate tax make permanent repeal the only solution for family businesses and farms. Repealing the estate tax will help America’s family businesses create jobs, expand operations, and grow the economy. We thank you for your continued leadership on this important issue.
Signed,
AMT – The Association for Manufacturing Technology
Food Marketing Institute
Agricultural Retailers Association
American Dental Association
American Wholesale Marketers Association
Associated Equipment Distributors
International Franchise Association
American Supply Association
National Cotton Council of America
Heating, Air-conditioning, & Refrigeration Distributors International
National Association of Electrical Distributors
National Lumber and Building Material Dealers Association
National Council of Farmer Cooperatives
American Trucking Association
Associated General Contractors of America
North American Meat Institute
Hardwood Federation
National Confectioners Association
Association of Mature American Citizens
American Rental Association
Americans for Tax Reform
Forest Landowners
Associated Builders and Contractors, Inc.
National Association of Home Builders
Industrial Minerals Association – North America
International Sleep Products Association
National Taxpayers Union
National Automatic Merchandising Association
NTCA–The Rural Broadband Association
National Insulation Association
AmericanHort (American Horticulture Industry Association)
Mason Contractors Association of America
American International Automobile Dealers Association
Heritage Action for America
Tire Industry Association American
Foundry Society
National Industrial Sand Association
American Architectural Manufacturers Association
NACS – The Association for Convenience and Fuel Retailing
Window & Door Manufacturers Association
Industrial Supply Association
Aeronautical Repair Station Association
American Business Defense Council
National Community Pharmacists Association
International Foodservice Distributors Association
ISSA – The Worldwide Cleaning Industry Association
United Fresh Produce Association
National Electrical Contractors Association
North American Die Casting Association
North American Equipment Dealers Association
Americans for Prosperity
Club for Growth
National Propane Gas Association
National Funeral Directors Association
International Association of Plastics Distribution
United States Cattlemen’s Association
International Sign Association
Auto Care Association
National Black Chamber of Commerce
National Small Business Association
International Housewares Association
Petroleum Marketers Association of America
American Conservative Union
Professional Beauty Association
Materials Handling Equipment Distributors Association
Service Station Dealers of America and Allied Trades
Printing Industries of America
Truck Renting and Leasing Association
National Milk Producers Federation
Small Business & Entrepreneurship Council
Let Freedom Ring
American Beverage Licensees
Woodworking Machine Industry Association
NPES – The Association for Suppliers of Printing, Publishing and Converting Technologies Irrigation Association
Wine & Spirit Wholesalers of America
National Grange
Associated Wire Rope Fabricators
American Loggers Council
NAHAD – The Association for Hose and Accessories Distribution
Plumbing-Heating-Cooling Contractors Association
WMDA Service Station & Automotive Repair Association
The Dude Ranchers’ Association
R-Street Institute
Forest Landowners Tax Council
Hispanic Leadership Fund
International Association of Refrigerated Warehouses
American Bus Association
American Horse Council
Center for Freedom and Prosperity
Global Cold Chain Alliance
American Commitment
Log Cabin Republicans
Free Congress Action
American Moving & Storage Association
National Association for the Self-Employed Independent Electrical Contractors
National Association of RV Parks & Campgrounds
NTEA – The Association for the Work Truck Industry
U.S. Business and Industry Council
Council for Citizens Against Government Waste
National Christmas Tree Association
National Tax Limitation Committee
Competitive Enterprise Institute
Taxpayer Protection Alliance
American Civil Rights Union
Campaign for Liberty
Less Government
Maryland Taxpayers Association
Americans for Constitutional Action
American Values
