A bicameral, bipartisan effort to fully repeal the estate tax was unveiled June 19 when Reps. Kevin Brady (R-TX), Mike McIntyre (D-NC) and Senator John Thune (R-SD) simultaneously introduced the Death Tax Repeal Act of 2013.
For small and medium manufacturers, the burden of the death tax is not only felt when property is transferred at death, but annually — with estate-planning costs averaging $94,000 a year. Manufacturers know that funds currently used to prepare for the estate tax could better be spent on business investment, expansion, and job creation.
Before Congress reached a deal to avert the fiscal cliff, maximum estate tax rates were set to skyrocket up to 55% this year. The American Taxpayer Relief Act of 2012 provided welcome relief by providing a permanent estate tax provision with a $5 million exemption (adjusted annually for inflation) at a 40% maximum rate.
Still, full repeal of the death tax would give small and medium manufacturers – many of which are family-owned – the certainty of knowing their companies will not need to be liquidated or sold to cover estate taxes.
The NAM applauds the introduction of S. 1183 in the Senate and H.R. 2429 in the House, and joined over forty organizations in thanking the sponsors of the Death Tax Repeal Act of 2013. To read the Senate letters click here and here.