Murray, Rossi clash on tax-cut renewal
August 31st, 2010Local News | Murray, Rossi clash on tax-cut renewal | Seattle Times Newspaper
Murray, Rossi clash on tax-cut renewal
Seattle Times political reporter
"Job creators need predictability so they can plan growth and expansion," he said in a statement. "As I've traveled around the state, I've heard from a number of small-business owners who have told me that the uncertainty regarding what Congress will do to extend tax relief means they are holding off on hiring workers or expanding, even though they have the means to do so."
Rossi has particularly highlighted his opposition to the federal estate tax with visits to area businesses, including Seattle's GM Nameplate.
The federal estate tax temporarily expired this year. If Congress does nothing, it will return next year at a 55 percent rate for estates worth more than $1 million. Obama has proposed returning the tax to 2009 levels, with a 45 percent tax on estates worth more than $3.5 million for individuals and $7 million for couples.
Don Root, president and CEO of GM Nameplate, led Rossi and reporters on a tour of his Interbay factory this month. The company, which Root bought in 1977, makes industrial labels and signs for companies like Boeing and John Deere.
Root said he's not so worried about proposals to increase his income tax. But he worries his four sons will have to sell all or part of the company when he dies to pay the federal estate tax. His company may be worth $40 million or more, but Root said most of that is tied up in equipment and facilities in the U.S. and overseas.
"Anybody who thinks they could figure out how we could pay an estate tax of 35, 40 or 55 percent, I will open up the books for them," said Root, who supported Rossi during his two runs for governor.
Murray said she supports efforts to lower the estate tax — including a compromise proposal by Sens. Blanche Lincoln, D-Arkansas, and Jon Kyl, R-Ariz, which would fix the tax at 35 percent with a $5 million exemption that would grow with inflation. But she said it would be irresponsible right now to completely eliminate it.
"I don't want it to go to one extreme or the other," she said.
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