HOUSE OF REPRESENTATIVES VOTES TO REPEAL DEATH TAX

Benjamin Franklin once wrote “in this world, nothing is more certain than death and taxes.”  Tell that to Congress.  The House voted 274 to 154 to repeal the estate tax, which is commonly known as the "death tax." H.R. 8, The Death Tax Elimination Act of 2001, gradually eliminates the estate tax on personal farms, businesses and other assets following the death of the owner.    The bill provides $192.8 billion in tax relief over ten years by reducing the estate and gift tax in 2002 and fully repeals it in 2011.  West Virginia representatives Nick Joe Rahall and Shelly Moore Capito voted in favor of the legislation.  

"The death tax is one of the most unfair taxes on West Virginians and all Americans, because it taxes farmers, ranchers and small business owners twice. First they pay the taxes, then the federal government taxes the
 value of their property again at the time of death," said Rep. Capito.  "No one should have to meet the undertaker and the IRS on the same day."

The Death Tax Elimination Act now goes to the US Senate for consideration.  Senator Jon Kyle, R-AZ, has already introduced a bill to eliminate the estate entirely, but his bill still requires heirs to pay capitol gains taxes whenever they sell assets that were inherited.

 A petition and letter writing campaign against the estate tax repeal comes from an unlikely source.  William H. Gates Sr, father of Microsoft billionaire Bill Gates, is working to retain the estate tax.  Gates Sr. told the New York Times, “repealing the estate tax would enrich the heirs of America’s millionaires and billionaires while hurting families who struggle to make ends meet.”