Congressman Lamar Smith 21st district of Texas

Contact: Blair Jones 202 225 4236

Washington, Apr 14, 2005 - In the last two years, our economy has created over 3 million jobs. The unemployment rate is down; our nation’s total output, or Gross Domestic Product is up; homeownership is at a record high; and personal income has increased.

Our economy is strong. To ensure that we continue to enjoy prosperity, Congress must support a pro-economic growth agenda that creates jobs and help small businesses grow. This includes continuing to reduce taxes across the board.

Our families and our country are better off when they keep more of what they earn.

One way to enable them to do that is to pass H.R. 8 today, which permanently repeals the punitive death tax.

More formally known as the “estate” tax, the death tax is a levy imposed at the time of an estate holder`s death. It has a particularly negative impact on small-business owners.

Applying this tax is often prevents parents from passing along their life’s work and savings to their kids. Family farms, ranches and small businesses are forced to be sold to satisfy the death tax`s rates, which can reach 55%.

Not surprisingly, 89% of small business owners favor permanent repeal of the death tax.

Congress took the first step toward death tax repeal in 2001 when it temporarily wiped the tax off the books. But unless Congress permanently repeals the tax, it will be reintroduced in 2011.That’s not only bad tax policy, it’s bad for families and small businesses.

No one should be taxed throughout their lifetime and then have their property re-taxed at the time of their death.

It’s the wrong tax, at the wrong time, on the wrong people.