Rep. Richard Hanna (R-N.Y.) called for an end to the federal estate tax on Wednesday, co-sponsoring legislation that would permanently repeal it.
Hanna, a member of the Joint Economic Committee, said the estate tax, which is also referred to as the “death tax,” punishes operators of family farms and businesses when an owner dies. Hanna signed on as a co-sponsor of the Death Tax Repeal Act of 2013 to bring a permanent halt to the tax.
“We see people work their whole lives to grow a business through hard work and saving and then, upon death, the government feels it’s entitled to a piece of someone’s business,” Hanna said. “It’s immoral and wrong. This death tax punishes entrepreneurs and farmers. It prevents businesses from being passed on to a second or third generation, and we should repeal it for good.”
The Joint Economic Committee estimates that the death tax cost the economy $1.1 trillion in capital stock.
New York Farm Bureau President Dean Norton said the estate tax has become an expensive hurdle that stands in the way of families who wish to pass their legacy from generation to generation.
“No portion of a family farm should ever have to be sold off to pay a death tax,” Norton said. “We support Rep. Hanna’s efforts to repeal this needless burden.”
National Federation of Independent Business (NFIB) Legislative Affairs Manager Matt Turkstra said repealing the estate tax is a “major” priority for small businesses across the country.
“Nearly half of NFIB’s small business owners have taken or plan to take money out of their business to pay lawyers, accountants, life insurers and others to deal with the estate tax,” Turkstra said. “While there has been significant progress in recent years to reduce the burden on small businesses, the best policy would be to repeal the estate tax once and for all. NFIB applauds Richard Hanna for adding his name to the growing list of Republicans and Democrats calling for the end of the estate tax.”
Joint Economic Committee Chairman Rep. Kevin Brady (R-Texas) introduced the Death Tax Repeal Act of 2013.