ACCA, the Indoor Environment & Energy Efficiency Association, applauds the introduction of bipartisan legislation that would permanently kill the onerous death tax. The Death Tax Repeal Act of 2017 was introduced this week by Sen. John Thune, South Dakota Republican, and by Reps. Kristi Noem, South Dakota Republican, and Sanford Bishop, Georgia Democrat.
“The estate tax, commonly referred to as the 'death tax,' disproportionately impacts ACCA’s members and America’s small and family-owned businesses,” said Barton James, ACCA’s senior vice president for government relations.
“As a second generation HVAC small business owner I can attest to the fact that the death tax has wreaked havoc on the family businesses in this industry, and it's long past time that we kill it off once and for all,” said Dan Weis, owner of Weis Comfort Systems in Fenton, Missouri, and ACCA government relations committee chairman. “On behalf America’s HVAC contractors, we thank Sen. Thune and Reps Noem and Bishop for introducing this common-sense bill, and we hope Congress will make quick work of passing it.”
ACCA has long advocated for a full and permanent repeal of the death tax. The threat of a looming tax, and the costs associated with preparation for the tax, prevents companies from making investments in the business, and they often forego hiring new employees and expanding the business. In many cases, the tax forces the sale of the business because the tax is based on the often non-liquid value of the business’ assets.
The death tax also costs all taxpayers because of unnecessary and unproductive compliance costs. According to the Joint Economic Committee, for every dollar of tax revenue raised from the death tax, a dollar is wasted in compliance costs. For example, in 2006, it was estimated that family businesses spent $27.8 billion just to comply with the law.
ACCA will continue to monitor this legislation as it moves through Congress.
For more information, visit www.acca.org.
Publication date: 2/2/2017