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CEI Joins Coalition Letter Urging Repeal of Estate Tax

Coalition Letters

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CEI Joins Coalition Letter Urging Repeal of Estate Tax

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Dear Leader McConnell, Speaker Ryan, Chairman Hatch, and Chairman Brady,

The undersigned organizations appreciate your work to lead the country towards a common-sense tax code that does not impose a destructive double or triple tax at death. We support the inclusion of full and permanent repeal of the federal estate tax as part of comprehensive tax reform for these reasons:

Repealing the death tax would spur job creation and grow the economy. Many studies have quantified the potential job growth that would result from estate tax repeal. Last year the Tax Foundation found that the US could create over 150,000 jobs by repealing the estate tax. A 2012 study by the House Joint Economic Committee found that the death tax has destroyed over $1.1 trillion of capital in the US economy – loss of small business capital means fewer jobs and lower wages. Lawrence Summers, former Secretary of the Treasury under President Clinton; Alicia Munell, member of President Clinton's Council of Economic Advisors; Joseph Stiglitz, a Nobel laureate for economics; and Douglas Holtz-Eakin, former CBO Director have all published work on the death tax's stifling effect on job growth and the economy as a whole. Earlier this year over 700 economists, including 4 Nobel Laureates, joined Milton Friedman’s open letter calling for death tax repeal.

The death tax contributes a very small portion of federal revenues. The estate tax currently accounts for approximately one half of one percent of federal revenue. There is a good argument that not collecting the estate tax would create more economic growth and lead to an increase in federal revenue from other taxes. A 2016 Tax Foundation analysis found repeal of the death tax would increase federal income taxes by $145 billion over 10 years using a more realistic, “dynamic” economic analysis. In addition, the death tax forces family businesses to waste money on expensive insurance policies and estate planning. These burdensome compliance costs make it even harder for business owners to expand their businesses and create more jobs.

A super-majority of likely voters support eliminating the death tax. Poll after poll has indicated that a super-majority of likely voters support repealing the estate tax. Typically, two-thirds of likely voters support full and permanent repeal of the death tax. People instinctively feel that the estate tax is not fair. A national NPR poll conducted by Ipsos in April of this year showed that 76 percent of Americans supported repealing the death tax.

The death tax is unfair. It makes no sense to require grieving families to pay a confiscatory tax on their loved one’s nest egg. Far too often this tax is paid by selling family assets like farms and businesses. Other times, employees of the family business must be laid off and payrolls slashed. No one should be punished for fulfilling the American dream.

Repeal is supported by majorities in both chambers. In April 2015 the House of Representatives passed the Death Tax Repeal Act of 2015 (H.R. 1105) with bipartisan support 240-179. Similarly, the Senate passed an amendment (S. Amdt. 607) calling for repeal of the estate tax as part of its FY2016 budget vote-a-rama; the amendment received 54 bipartisan votes. These votes show support for repeal from a bipartisan majority in the House and Senate.

The negative effects of the estate tax make permanent repeal the only solution for family businesses and farms. Estate tax repeal should be a significant part of any comprehensive tax reform plan, and will help America’s family businesses create jobs, expand operations, and grow the economy. We thank you for your continued leadership on this important issue.

Signed,

AMT – The Association For

Manufacturing Technology

Food Marketing Institute Agricultural Retailers

Association

Heating, Air-conditioning, &

Refrigeration Distributors

International

National Association of

Electrical Distributors

National Lumber & Building

Material Dealers Association

Financial & Security

Products Association

American Supply Association National Cotton Council of

America

International Franchise

Association

National Grocers Association Associated Equipment

Distributors

ALEC Action Hardwood Federation National Confectioners

Association

Hardwood Plywood &

Veneer Association

American Trucking

Associations

Institute For Liberty

Association of Mature

American Citizens

Air Conditioning Contractors

of America

Americans for Tax Reform

Forest Landowners

Association

Associated Builders and

Contractors, Inc.

National Association of

Home Builders

Global Cold Chain Alliance American Commitment Log Cabin Republicans

Consumer Action for a

Strong Economy

National Insulation

Association

North American Meat

Institute

Metal Construction

Association

Truck Renting and Leasing

Association

Council for Citizens Against

Government Waste

AmericanHort Mason Contractors

Association of America

Coalition of Franchisee

Associations

Industrial Minerals

Association - North America

International Sleep Products

Association

National Taxpayers Union

Gases and Welding

Distributors Association

NTCA – The Rural Broadband

Association

Arizona Free Enterprise Club

ISSA—The Worldwide

Cleaning Industry

Association

National Marine

Manufacturers Association

National Electrical

Contractors Association

Plumbing-Heating-Cooling

Contractors—National

Association

NAHAD – The Association

for Hose and Accessories

Distribution

American Sheep Industry

Association

Wine & Spirits Wholesalers

of America

National Grange Associated Wire Rope

Fabricators

International Housewares

Association

Petroleum Marketers

Association of America

American Conservative

Union

American Bus Association Association of Equipment

Manufacturers

American Foundry Society

National Industrial Sand

Association

American Legislative

Exchange Council

Aeronautical Repair Station

Association

Equipment Marketing &

Distribution Association

National Club Association National Christmas Tree

Association

American Business Defense

Council

Education Market Association Frontiers of Freedom

National Renderers

Association

Equipment Dealers

Association

Americans for Prosperity

Club for Growth National Association for the

Self-Employed

Conservatives for Property

Rights

American Loggers Council The Dude Ranchers’

Association

National Marine Distributors

Association

International Association of

Plastics Distribution (IAPD)

United States Cattlemen's

Association

International Sign

Association

Auto Care Association National Black Chamber of

Commerce

National Small Business

Association

Small Business &

Entrepreneurship Council

Family Business Association

of California

American Beverage

Licensees

Professional Beauty

Association

Material Handling Equipment

Distributors Association

FreedomWorks

Outdoor Power Equipment

and Engine Service

Association

Water & Sewer Distributors of

America

Western Growers

Association

Land Improvement

Contractors of America

American Horse Council Center for Freedom and

Prosperity

National Pasta Association Kentucky Forest Industries

Association

Independent Medical

Distributors Association

Hispanic Leadership Fund NPES The Association for

Suppliers of Printing,

Publishing and Converting

Technologies

Irrigation Association

NACS – The Association for

Convenience and Fuel

Retailing

National Candle Association International Association of

Refrigerated Warehouses

Independent Lubricant

Manufacturers Association

Kitchen Cabinet

Manufacturers Association

Maryland Taxpayers

Association

Franchise Business Services

(representing Buffalo Wild

Wings franchisees)

Tire Industry Association Printing Industries of

America

Rural & Agriculture Council

of America

American Moving & Storage

Association

American Rental Association

Independent Electrical

Contractors

National Association of RV

Parks & Campgrounds

(ARVC)

NTEA – The Association for

the Work Truck Industry

NATSO, Representing

America's Travel Plazas and

Truckstops

Metals Service Center

Institute

Southeastern Lumber

Manufacturers Association

National Franchisee

Association (representing

Burger King franchisee)

Competitive Enterprise

Institute

Sazerac

Service Station Dealers of

America and Allied Trades

(SSDA-AT)

National Utility Contractors

Association

National Community

Pharmacists Association

Jewelry Industry Distributors

Association

National Roofing Contractors

Association

Wholesale Florists & Florist

Supplier Association

Window and Door

Manufacturers Association

The Latino Coalition Let Freedom Ring

Appalachian Hardwood

Manufacturers Inc.

WMDA Service Station &

Automotive Repair

Association

60 Plus Association

Business & Institutional

Furniture Manufacturers

Association

Washington Area New Auto

Dealers Association

Convenience Distribution

Association

Distribution Contractors

Association

National Tax Limitation

Committee

Power and Communication

Contractors Association

American Pipeline

Contractors Association

American Values American Civil Rights Union

Less Government Campaign for Liberty Center for Individual

Freedom

Taxpayers Protection

Alliance

R-Street Institute Heritage Action for America

U.S. Business and Industry

Council

Home School Legal Defense

Association

National Ready Mixed

Concrete Association

National Wooden Pallet &

Container Association

Family Business Coalition