U.S. Chamber Says "No More Death Tax"

WASHINGTON, D.C. – The United States Chamber of Commerce called on the new Congress to end the "death tax," as a bill co-sponsored by more than 100 Republican and Democratic members was introduced today on Capitol Hill. The Death Tax Elimination Act of 2001 phases out federal estate taxes over the next ten years and also repeals the federal gift and generation-skipping transfer taxes.

"The long arm of the IRS should not reach beyond the grave. American families that have worked hard for generations to build up a business or farm should not be forced to sell the business or its assets in order to pay a death tax," said Thomas Donohue, Chamber President and CEO. "Successful businesses should not be punished with an onerous after-death tax."

The bill, introduced by Representatives Jennifer Dunn (R-WA) and John Tanner (D-TN), is nearly identical to the death tax repeal bill that passed both the House and Senate last year but was vetoed by President Clinton

Full repeal of the death tax would mean only a small revenue loss to the federal government, according to the Chamber, but repeal would preserve the livelihood of many small business owners, protect the jobs of their workers and serve the interests of the local community. Furthermore, the tax is costly to collect and has spawned a whole industry to avoid paying it.

"Although immediate repeal is preferable, this legislation will gradually eliminate the death tax. It's totally unjust for the federal government to slap an enormous tax on the estate of American taxpayers when a loved one dies," Donohue said. "Death should not be a taxable event."

The U.S. Chamber of Commerce is the world's largest business federation representing more than three million businesses and organizations of every size, sector and region.

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