House lawmakers recently passed legislation that would repeal the estate and generation-skipping transfer taxes and cut the highest gift tax rate from 40% to 35%.
The Death Tax Repeal Act of 2015 passed 240 to 179 over the objections of House Democrats.
The Democrats argued that the repeal of the estate tax would provide an average tax break of $4 million to only 5,400 of the wealthiest families in America each year. Republicans argued that the estate tax unfairly hits family owned farmers, broadcasters and funeral home operators and that the repeal of the estate tax would keep family businesses intact after the death of the owner. Further, these companies employ thousands of workers each year.
President Obama has promised to veto the measure should it pass the Senate.
It is estimated that the bill will add $269 billion dollars to the deficit over the next decade.
Do you think that the “Death Tax” should be repealed?