FOXX VOTES AGAIN FOR PERMANENT DEATH TAX RELIEF

Thursday June 22, 2006

FOR IMMEDIATE RELEASE
CONTACT: Amy Auth
202-225-2071

WASHINGTON – Today, United States Rep. Virginia Foxx (N.C.-5) voted for permanent Death Tax relief for thousands of American families, small businesses and family farms.  The House passed H.R. 5638, the Permanent Estate Tax Relief Act of 2006, in a 269 to 156 vote.

“The Death Tax is an unreasonable burden on countless Americans,” said Rep. Foxx.  “It is simply unfair for the federal government to capitalize on the passing of loved ones – especially when their assets were already taxed before their passing. Today’s bill will protect the vast majority of Americans from paying any of the Death Tax.”

H.R. 5638 would:

  • Increase the exemption amount to $5 million per person effective January 1, 2010
  • Reduce the tax rate on estates up to $25 million to the capital gains tax rate (currently 15 percent, set to increase in 2011 unless extended)
  • Reduce the tax rate on estates of $25 million or more to twice the capital gains rate (currently 30 percent, set to increase to 40 percent in 2011 unless extended)

“I have called for and supported the permanent elimination of the Death Tax for all those affected,” said Rep. Foxx.  “This bill is a good compromise that will provide much-needed relief for those that deserve and need it. “

The Death Tax is a major threat to the vitality of family-owned businesses and farms because most of their owners have the entire value of their business or farm in their estate.  The federal government currently receives nearly half of an estate when the owner passes.  As a result, more than two-thirds of family businesses do not survive the second generation and nearly 90 percent do not make it to the third generation.   “Rather than encouraging people to build their own livelihoods, the Death Tax discourages hard work and savings.  Today, the House did the right thing by voting for permanent relief,” said Foxx.

Last year, Rep. Foxx voted to permanently repeal the Death Tax, but the U.S. Senate failed to get enough votes to take up the bill.

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