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Washington, DC – Congressman Bill Shuster will vote in favor of reducing the Death Tax today, an effort which will provide tax relief for small businesses, particularly family farms in central and western Pennsylvania. The Death Tax is a duplicative and heavy burden placed on estates and family assets when the homeowner passes away, and without Congressional action this rate will reach 55 percent within five years.
"Small businesses and family farms across central and western Pennsylvania are the backbone of our communities as they provide goods, services and countless jobs," said Shuster, who owned a small business in Blair County before being elected to Congress in 2001. "And they should not be recklessly taxed twice, a policy that has forced many out of business. This bill exempts the smallest businesses and provides relief for many other medium-sized farms and businesses so they can grow, hire and expand rather than pay a duplicative tax."
The Permanent Estate Tax Relief Act, H.R. 5638, provides small businesses permanent relief from the Death Tax by exempting a vast majority of small farms and small businesses that hold their assets within an estate. For larger farms and other family-operated businesses the tax rate will be reduced to 15 percent.
"This deal is short of the full repeal we have been working toward, but it’s a permanent compromise that will relieve some of this duplicative tax burden on small business owners," said Shuster, a member of the Small Business Committee. "Families and businesses have already paid taxes on all of these assets and for too long the federal government has been taxing it again when the owner passes away."
Eighty-nine percent of small business owners support the permanent repeal of the Death Tax, and more than half of small businesses say they would add jobs if the Death Tax were eliminated. This bill is the result of a compromise struck because Democrats obstructed its permanent repeal for years. The House of Representatives is expected to pass the bill early this evening on a party line vote as Democrats continue attempts to block any cut in taxes. |
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