The Current Fight

The American Family Business Institute is happy to report that bipartisan federal estate tax repeal legislation has been introduced in Congress and is expected to pass in the House of Representatives with a strong majority.  

H.R. 1259, the Death Tax Repeal Permanency Act, is sponsored by Representative Kevin Brady (R-TX-8) and cosponsored by a growing list of supporters which includes Blue Dog Caucus Chairman Representative Mike Ross (D-AR-4) and Dan Boren (D-OK-2). 

The federal estate tax is temporarily set at a rate of 35% with a $5 million exemption, due to legislation passed in December, 2010.  The tax was repealed in 2010 due to the 2001 tax cuts.  That legislation was not permanent and the tax was scheduled to be reinstated at the rate of 55% on all assets above a $1 million exemption on January 1, 2011. 

Congress passed H.R. 4853, the Middle Class Tax Relief Act, and temporarily set the tax at its current rate.  This legislation will expire at the end of 2012 and the death tax will return to 55% with a $1 million exemption on January, 1, 2013, unless Congress acts to permanently repeal the tax. 

The good news is that a majority of the House of Representatives support permanent death tax repeal.  On November 2, 2010 131 signers of the Death Tax Repeal Pledge won their election to U.S. Senate and House.  These candidates, along with other identified supporters in each branch of Congress, will lead the charge for permanent repeal. 

The bad news is that the White House and current Senate leadership continues to ignore the research showing that reinstating the death tax at any level is bad for small businesses and farms, jobs, and even federal revenue.  They also ignore the polls which show that two-thirds of the American people support permanent repeal.

It is up to AFBI and our supporters to remind Congress that the American people support permanent repeal.  

Will you join the fight for repeal?