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Press Release Archive
April 4, 2001
Akin Votes to Repeal Death Tax
The tax was enacted to help support World War One.
(Washington)- The House today passed H.R. 8, the Death Tax Elimination Act of 2001. The bill eliminates the death tax, which currently takes up to sixty percent of a family business or farm and is responsible for killing mom-and-pop shops around the country.
Last Thursday the House passed the Marriage Penalty and Tax Relief Act (H.R. 6), which eliminates the marriage penalty and doubles the child tax credit to $1,000. Earlier the House passed the Economic Growth and Tax Relief Act (H.R. 3), the centerpiece of the President’s tax cut proposal. “This is the third installment in a trilogy of fair and responsible tax relief, said Representative Akin (R-Mo.) “The death tax is an unfair burden to families who lose a loved one.”
According to the National Federation of Independent Businesses (NFIB), one-third of small-business owners today will have to sell outright or liquidate a part of their business to pay death taxes. Half of those who must liquidate to pay the IRS will each have to eliminate 30 or more jobs. “Given the faltering economy, it makes no sense to have a tax structure that systematically destroys small businesses, because these small businesses employ a large portion of America’s workforce,” commented Akin.
In 1797, 1862 and 1898 a death tax was passed to help fund military buildups or wars. All were repealed within eight years. The current tax, however, was enacted in 1916 to help fund America’s effort in World War One, and has never been repealed.
“It does not make sense to have an antiquated law stifling the economy and impeding prosperity,” said Akin. “World War One is long over, the tax has outlived its purpose and survives as an unfair burden to hard-working American families.”
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