Dear Congressman Brady:
On behalf of more than two million Americans for Prosperity activists in all 50 states, I write in support of the Death Tax Repeal Act of 2015 (H.R. 1105). Your legislation would amend the Internal Revenue Code of 1986 to repeal the estate tax.
As you know, the lifeblood of the American economy is small business and when the government removes capital from the market those dollars cannot be used to invest in improvements or expansion. According to the Joint Economic Committee’s Republican Staff Study, the estate tax has cumulatively reduced the amount of capital stock in the U.S. economy by over $1.1 trillion in the past century. The injection of these dollars back into the economy through repeal would boost income and sales tax revenues, filling the void of the estate tax.
Supporters of the death tax often point to the tax as bringing equality to the tax system by only targeting the very wealthy. The truth is that the wealthiest estates often have teams of lawyers on hand to avoid this onerous tax while smaller businesses and family farms suffer. All too often those affected on the lowest levels of the estate tax do not have sufficient liquid assets to cover their liability, leading to the closure of many family businesses.
Additionally important, the death tax generates a sliver of federal revenue. According to the IRS, in 2013 it produced merely $12.7 billion in revenue. This accounted for less than .1% of federal revenue—hardly the income equality tool proponents claim.
When a person works hard and creates a successful venture or thriving family farm, they have paid taxes every step of the way. By eliminating the death tax we will be providing the opportunity for these hard working Americans to continue growing with each family generation. Americans for Prosperity is proud to support the Death Tax Repeal Act of 2015 (H.R. 1105). I look forward to working with you on this and many other issues in the future.
Vice President of Government Affairs
Americans for Prosperity