Washington, D.C. - U.S. Rep. Tim Johnson (IL-15) said today's repeal of the estate tax is a historic event that all Americans will benefit from.

"This is a banner day. This is one reason why the citizens of the 15th Congressional District sent me to Washington, to help rid them of these onerous tax burdens that have crippled small businesses, farms and families," Rep. Johnson said.

   The legislation passed 272-162.

Congressional action on Wednesday extends the death tax repeal permanently beyond the intended phase-out of the repeal in 2010. That sunset date had been put in place in 2001 to avoid procedural roadblocks in the Senate that threatened to derail approval of President Bush's tax relief bill.

Before 2001, the top death tax rate was 55 percent, with some taxpayers paying a 60 percent marginal rate. Today the top rate is 47 percent. That will be eliminated with the House action Wednesday and with  companion legislation that has been introduced and is expected to pass in the Senate.

Making the repeal permanent allows taxpayers to make long-term financial decisions that were not possible with a "death tax" hovering over their twilight years.

"Death should not be a taxable event," Rep. Johnson said. "This is a tax on income and assets earned over a lifetime, assets that have already been taxed once. This long-overdue decision by Congress will not only help sustain family businesses and farms, but will generate jobs, allow resources to be reinvested in private enterprises, and stimulate charitable giving."

Rep. Johnson noted that repeal of the death tax has been a top priority since he first started campaigning for Congress in 1999 and was an effort he championed at the state level while serving in the Illinois Legislature before moving to Congress. Constituent frustration with the taxation has not abated since.

The Center for the Study of Taxation concluded that 70 percent of family businesses do not survive the second generation; 87 percent do not make it to the third generation.

"This has to stop," Rep. Johnson said. "Family businesses have been the backbone of  our nation. This legislation is a historic success for hardworking American people, and one all households will benefit from," Rep. Johnson continued. "Any marginal loss in tax revenue from this action will be more than offset by a more vigorous economy. This confiscatory tax has historically rewarded those who spend indiscriminately and left nothing, and punished those who value thrift, who value the achievement of something lasting for their families. With this legislation, we've started to balance the scales."

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