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Press Release

    It’s Time to Kill the Death Tax

    01/31/2005

    Dear Representative,

    On behalf of our 700,000 members nationwide, FreedomWorks strongly encourages you to support H.R. 64, The Family Heritage Preservation Act. This important legislation would immediately and permanently repeal the federal Death Tax.

    As you know, the Death Tax is an unfair double tax on saving, investment, and entrepreneurial success. Further, the Death Tax is one the most inefficient taxes to collect, with more than 65 cents of every dollar going towards compliance and planning. It also is a direct tax on American capital formation—a key engine driving economic growth. According to a Joint Economic Committee study published in June 2003, the Death Tax reduces the stock of capital in the economy by a staggering $497 billion, or 3.2 percent.

    For these reasons, Congress is wisely phasing out the Death Tax as part of the broad tax-cut package (H.R. 1836; P.L. 107-16) signed into law on June 7, 2001. Unfortunately, because of arcane budget reconciliation procedures, the Death Tax phase-out expires at the end of 2010. The result: the Death Tax will return in full force in 2011, and would constitute the largest tax increase in U.S. history.

    H.R. 64 would fix this problem by properly executing the clear will of Congress and ending the Death Tax once and for all. H.R. 64 will eliminate the possibility that the tax will return in 2011 and make tax planning more predictable and fair. It also eliminates the phase-out schedule that taxes Americans differently, simply for dying in different years.

    The current situation unnecessarily adds uncertainty to U.S. tax law and to the economy. It is time for Congress to put the Death Tax to rest once and for all by passing H.R. 64 this year.

    Sincerely,

    Matt Kibbe
    President and CEO
    FreedomWorks