Congressman Fleming Votes Against Death Tax

Press Release

Today, Congressman John Fleming cast a vote against the Democrat's tax-raising "Death Tax" bill, H.R. 4154. The bill passed the House, however, by a final vote of 225-200. The legislation makes the death tax permanent with a top rate of 45%, and a $3.5 million exemption (not adjusted for inflation).

"It is more than ironic that the liberal leadership in the House named this the "Permanent Estate Tax Relief for Families, Farmers and Small Businesses Act' because this bill does just the opposite of what it says," said Congressman Fleming. "This legislation creates a permanent death tax, which is detrimental to both small businesses and farmers, which cannot continue to exist with the tax burden placed on succeeding generations. The only thing this bill will relieve people of is money in their pocket books."

A study by former CBO Director Douglas Holtz-Eakin shows that eliminating the death tax would allow small business investment to rise about 3% annually, adding some 1.5 million jobs to the economy.

Under current law the death tax is repealed in 2010. The intent of this legislation is therefore to preserve as much of the death tax as is politically feasible despite the deep unpopularity of the tax. The 45% rate of the death tax substantially exceeds the 15% top capital gains tax rate, as well as the 35% top income tax rate. Also, under H.R. 4154, the $3.5 million exemption would NOT be indexed for inflation, which means that it will gradually hit more and more families and businesses (similar in this respect to the Alternative Minimum Tax).

Congressman John Fleming represents the 4th Congressional District of Louisiana. He is a member of the House Armed Services and Natural Resources Committees.

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