Key Issue Summary: Repeal the Death Tax
The death tax is a tax applied to the transfer of a person’s assets at death. It is defined by the IRS as a tax on your right to transfer property at your death. Under current law, the tax is temporarily set at the rate of 35 percent with an exemption of $5 million. On January 1, 2013 the death tax is set to return to a rate of 55 percent and a $1 million exemption.
In March of 2011, Congressman Kevin Brady (R-TX) introduced H.R. 1259 (205 cosponsors), the “Death Tax Repeal Permanency Act of 2011.” Last month, Senator John Thune (R-SD) introduced S.2242 (34 cosponsors), a mirror version to Congressman Brady’s legislation.
Repeal of this tax will increase stability in family-owned businesses, creating more jobs. Former CBO Director, Douglas Holtz-Eakin, projects that permanently repealing the death tax will create over 1.5 million small business jobs.