April 4, 2001

Washington, D.C.-The Small Business Survival Committee (SBSC) praised the U.S. House of Representatives today for voting to terminate the death tax by a vote of 274-154.

SBSC chief economist Raymond J. Keating observed: "This bipartisan vote in favor of killing the destructive and immoral death tax should be celebrated by everyone concerned about our economy, and the well-being of America's small businesses.  After paying a lifetime of taxes, it is tragic that the government shows up at death looking to grab up to 55% of one's assets."

"Many small businesses have to be sold or liquidated to pay death taxes.  Huge amounts of resources are wasted on estate planning-from employing lawyers and accountants to paying for insurance.  This means less investment, slower economic growth and restrained job creation," Keating added.  "Eliminating death taxes will boost incentives for investment, which is good for the economy and for job creation."  

As the issue moves to the U.S. Senate, Keating warned: "Anything less than killing the death tax will be a loss to the U.S. economy and America's small businesses.  And the sooner this tax is put out of our misery the better-waiting a decade is economically counterproductive."

"Killing the death tax is not just sound economics, but sound politics as well," Keating pointed out.  "According to a post-election survey conducted for SBSC, 62% of voters chose "zero" when asked to specify a fair percentage that should be taxed on assets - regardless of the total amount of assets -- left to an heir when someone dies.  The people understand that the death tax is immoral and bad for the economy."