(Washington, D.C.) – On behalf of its more than one million members and supporters, the Council for Citizens Against Government Waste (CCAGW) today endorsed the Jobs Protection and Estate Tax Reform Act of 2005, introduced by Sen. Jeff Sessions (R-Ala.). 

“This bill will finally and permanently rid us of the death tax and not a moment too soon,” CCAGW Vice President for Government Affairs Elizabeth Wright said.

Prior to the temporary repeal of the death tax in 2001, families who inherited an estate with a value of $650,000 or more were subject to a 55 percent tax.  The tax-cut package gradually reduced estate tax rates and increased the exemption.  However, in 2010, these changes will disappear and the death tax will return in full force in 2011. 
 

“The current situation creates complexity and uncertainty for many Americans as they plan for their future,” Wright continued.  “The Baby Boomers are seeing large portions of their parents’ estates disappear to pay the death tax.  Thousands of families who own farms or a small business wonder if they will be able to pass them on without their heirs facing a huge financial penalty.  It has become quite clear that the federal death tax no longer affects just the super wealthy.  It is touching the lives of millions of Americans and this situation must be corrected.”

Americans who own a home and have invested some of their earnings in the stock market for their retirement could also see a large portion of their estate disappear if the death tax returns in 2011. 

“The death tax is unfair because it taxes assets that have already been taxed,” Wright concluded.  “It is time to repeal this insidious source of federal revenue.  We are proud to support this legislation and will work with Sen. Sessions to make it the law of the land.”

The Council for Citizens Against Government Waste is the lobbying arm of Citizens Against Government Waste, the nation's largest nonpartisan, nonprofit organization dedicated to eliminating waste, fraud, abuse, and mismanagement in government.