Letter on H.R. 4154, the "Permanent Estate Tax Relief for Families, Farmers, and Small Businesses Act of 2009"

December 2, 2009

TO THE MEMBERS OF THE U.S. HOUSE OF REPRESENTATIVES:

The U.S. Chamber of Commerce, the world's largest business federation representing more than three million businesses and organizations of every size, sector, and region, urges Congress to expeditiously approve a permanent estate tax solution to provide certainty for family-owned businesses and farms. Although imperfect, H.R. 4154, the "Permanent Estate Tax Relief for Families, Farmers, and Small Businesses Act of 2009," is a step towards this goal.

Permanency and certainty are essential components of any estate tax relief legislation. The uncertain nature of the estate tax regime over the next two years is major concern for businesses, many of which are struggling in the current economic downturn. The cost of the estate tax falls heavily on family businesses, and resources diverted from businesses to pay for estate tax planning would be better invested, especially in the recession, in business operations and expansion so that they can create and maintain jobs in America.

The Chamber strongly supports legislation to permanently establish a top rate of 35 percent and exemption amount of $5 million, indexed for inflation. Legislation of this type would not only address the uncertainty caused by current estate tax law, but would provide critical relief for family businesses and farms struggling to grow their businesses and create jobs.

The Chamber looks forward to working with the House and Senate on improved estate tax legislation that provides much needed relief to family owned businesses and farms.

Sincerely,

R. Bruce Josten