Congressman Lynn A. Westmoreland
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Westmoreland Votes For Repeal Of Death Tax


Washington, Apr 13, 2005 -

U.S. Rep. Lynn Westmoreland voted today to permanently end the death tax, which passed the House by a large bipartisan margin.

"There’s nothing in our federal code more repugnant than double taxation, and that’s exactly what the death tax is," Westmoreland said. "Our tax system should encourage entrepreneurship and savings. The death tax punishes success and prudence. On the flip side, it rewards mass consumption.

"Once American workers earn money and pay taxes on it, that money belongs to them and to their families. Americans’ savings should not be a piggy bank for the federal government to raid.

"As a homebuilder, I know firsthand the tremendous amount of sweat equity that goes into starting a small business from scratch. More than 70 percent of family businesses do not survive the second generation; 87 percent do not make it to the third generation. Why? Part of the reason is that the government ‘inherits’ a large percentage of the business’ wealth when it passes from one generation to the next. Many farmers and small businesses have their worth tied up in land and equipment and other capital. They don’t have the cash to pay the taxes and end up having to sell off their ownings. That’s counterproductive. It’s an insult to hard work and thrift and, in the long run, it costs jobs."

The following is Westmoreland’s floor statement on repeal of the death tax:

Death Tax Repeal – H.R. 8

Lynn A. Westmoreland

Mr. Chairman/Speaker, I rise today in support of H.R. 8. I applaud the efforts of the leadership and the gentleman from Missouri in bringing forward H.R. 8 to finally bury the death tax once and for all.

One of the things our country needs is individuals who are willing to work hard and save their money – it’s the basis of our economy, and the American Dream. This country is a wonderful land of opportunity—anyone can work hard and be whatever they want to be in this country. Yet our tax system directly discourages saving, by limiting contributions to IRAs and taxing dividends.

When you work hard and save, you should be rewarded, not punished. The current death tax punishes people for saving their own money—for fulfilling the American Dream!

Tax cuts don’t "cost money" to the US government – it allows people to keep more of their money that they have earned. This Congress must recognize that tax cuts spur economic growth—we have seen this in the Reagan tax cuts that led to the boom of the 90s, and in this President’s tax cuts that have brought us out of the recession this country experienced after 9/11.

As a small business owner, I know firsthand how hard you have to work to build a business. And most times, the assets of a family business are not in cash or easily sold. When a family business is hit with an estate tax bill, it often requires the selling of a large amount of inventory or other assets in order to pay the bill—that’s not right, and that hurts families who want to continue the legacy of their loved ones who have passed away. Why do we want to harm or punish or exploit those who work the hardest and create an inheritance for their loved ones?

The death tax has made crooks out of honest people, because they have to search for all kinds of ways to avoid paying the tax, because they hate to see everything somebody spent their life building taken away by the government.

Small businesses shouldn’t be run while looking back over your shoulder to make sure the tax man isn’t about to get you – small business owners must be able to focus on their businesses. More than 70% of small family businesses do not last beyond the second generation—and the estate tax plays a large part in that. Having someone pay half of their assets to the government is absolutely wrong no matter what is being paid—we all know that people can manage their own money much better than the government.

One of the things I hate more than anything is a double tax. When the government takes its bite out of the apple, it shouldn’t get to take a second one. Yet the death tax takes an even bigger bite out of money that has already been taxed. Economic studies have shown that the cost of trying to comply or avoid the death tax consumes as much out of the economy as is generated by the death tax itself.

The death tax also hits those who can’t afford a lawyer and a CPA to help them. If their assets are not cash (as in most family businesses), they may have a huge tax burden they weren’t ready for, and their children are left making the payment. And in spite of all of this, the death tax doesn’t even generate that much revenue or "windfall profit" for the government, while placing this huge burden on the families of the country! That is not right.

The idea of the tax coming back in 2011 is amazing. It just doesn’t make sense, and people can’t make any long-term financial plans. Getting rid of the death tax will simplify our nation’s laws and ease the burden on our country. It takes a CPA and a lawyer to get you through most of the tax code as it is, and anything we can do to lessen that burden is a plus. Repealing the death tax is the right thing to do.

Although I wasn’t in Congress when the phaseout of the death tax began, I am thrilled to be here today to cosponsor and vote for it to be completely eliminated. I urge all my colleagues to do the same.

Mr. Chairman/Speaker, I yield back the balance of my time.

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