Zinke on House Floor: “The Death Tax is a Tax on the American Dream
WASHINGTON, DC – April 15, 2015 – (RealEstateRama) — Today, the U.S. House of Representatives passed H.R. 1105, The Death Tax Repeal Act of 2015, by a bipartisan margin of 240-179. Montana Congressman Ryan Zinke spoke on the House floor in support of H.R. 1105 which he co-sponsored. The Death Tax, officially known as the “estate tax,” taxes children, grandchildren and other relatives for inheriting property, a business, or other assets following a loved-one’s death. This tax is particularly threatening to family-run farms and small businesses because their investments are typically illiquid and include equipment, machinery and land.
Transcript of Zinke’s speech: “Yesterday was Tax Day. While some Americans look forward to a refund, many families in my state and across the nation are reminded a looming debt their children and grandchildren will face. The Death Tax jeopardizes the future of 28,000 Montana farms and thousands more of small family-run businesses. This is not a leisure class. These are hardworking Americans that spent their whole life, generations, building their future only to see it threatened. This tax punishes Americans that worked hard, played by the rules, and want to pass that legacy on to their children. The death tax is a tax on the American Dream. I’m a proud co-sponsor of H.R. 1105, the Death Tax Repeal Act of 2015, and I urge my colleagues to support this measure in order to preserve American dream for farmers and small ranchers.”
Montana is home to just over 28,000 farms and ranches, according to the USDA. Even if they are not currently at the level that the Death Tax impacts, the future growth of smaller farms is put at risk. A 2012 Joint Economic Committee (JEC) report called the death tax the “an overwhelming cause of the dissolution of family businesses.” The death tax hurts family businesses and farms the most because they often do not have the liquid assets to meet the tax liability. Often the only option is to sell or break up the family business or farm to pay the Internal Revenue Service. The Montana Farm Bureau has a history of opposing the tax.