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House Bill to Repeal Estate Tax Strengthen Small Family-Owned Business - 2/21/2005 - Insurance Lawyers Taxes

House Bill to Repeal Estate Tax Would Strengthen Small Family-Owned Businesses

Bipartisan legislation introduced on Feb. 17 by Reps. Kenny Hulshof (R-Mo.) and Robert E. “Bud” Cramer (D-Ala.) to permanently repeal the estate tax would help small family-owned businesses create more jobs and continue to prosper, according to NAHB.

“By placing a substantial burden on the heirs who potentially could be forced to liquidate assets, the estate tax represents one of the greatest threats to the future viability and growth of family-owned businesses,” said NAHB President David Wilson. “Hard-working Americans should not have to pay the federal government more than 50% of their estate at death. NAHB is pleased to support this important measure rescinding the death tax.”

H.R. 8, the “Death Tax Repeal Permanency Act,” is identical to legislation that passed the House in the 108th Congress by a wide 264-163 margin.

Sens. Jon Kyl (R-Ariz.) and Bill Nelson (D-Fla.) also introduced a death tax revision bill last week, S. 420.

Under the current law, which was enacted in 2001, the estate tax is being gradually phased out until it disappears entirely in 2010. But it roars back to life in 2011, when the entire estate tax cut sunsets.

 
While reductions in the tax are welcome, builders would prefer no death tax at all and many are saying that the scheduled cuts in the tax over this decade make planning their estates more difficult. If they don't keep up with changes in the schedule, nearly half of their estates can be lost to federal taxes after they die.

Wilson said that the estate tax “has placed a burden on the heirs of family-run home building companies,” and he added that some business heirs even have to liquidate company assets to pay for the tax.

“The death tax is a threat to the future viability and growth of family-owned businesses,” Wilson said.

He said that the issue is of particular importance to the housing industry, which is comprised largely of small businesses, and that NAHB will be urging the House to act swiftly on this measure. The Senate is expected to introduce similar legislation shortly.

To read the legislation, click here and enter H.R. 8 in the box at the upper left.


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