April 15, 2015
U.S. House of Representatives
Washington, D.C.  20515
 

Dear Representative,

You will soon vote on H.R. 1105, the Death Tax Repeal Act, sponsored by Rep. Kevin Brady (R-Texas), which would permanently repeal the federal estate tax and generation-skipping transfer tax.  On behalf of the more than one million members and supporters of the Council for Citizens Against Government Waste (CCAGW), I urge you support to this important legislation.

Repealing the death tax is both fair to heirs and sound economic policy.  The death tax unfairly double taxes hardworking Americans who scrimp and save their entire lives.  It is simply wrong to make it difficult and complex for individuals to pass down the fruits of their labor.

A 2014 Tax Foundation report found that repealing the death tax would increase federal revenues by $3.3 billion per year.  In a 2012 study, the Joint Economic Committee found that the tax impedes economic growth because it discourages savings and capital accumulation.  Furthermore, the study found that the death tax has reduced the amount of capital stock in the U.S. economy by roughly $1.1 trillion since its introduction in 1916, yet had produced only $1.2 trillion in revenue during the 96-year period measured.

H.R. 1105 would permanently eliminate the death tax, while establishing a maximum gift tax rate of 35 percent with a $5 million lifetime gift tax exemption.  This legislation would also provide business owners with greater certainty in their estate planning and provide them with the capital they need to grow and create jobs.

I strongly urge you to support Rep. Brady’s legislation.  All votes on H.R. 1105 will be among those considered in CCAGW’s 2015 Congressional Ratings.

Sincerely,

Tom Schatz

President, CCAGW