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June 6, 2002
(House)
H.R.
2143 - Permanent Death Tax Repeal Act
(Rep. Weldon (R) Florida and 57 cosponsors)
The
Administration strongly supports House passage of the Permanent
Death Tax Repeal Act. The Administration is pleased that the House
is acting now to make an important part of the President’s
tax relief plan permanent.
The
Economic Growth and Tax Relief Reconciliation Act of 2001 provided
well-timed and much needed tax relief to the American people and
laid the foundation for a quicker return to long-term economic growth.
Key elements of this relief include: a reduction in income tax rates,
including a new low 10-percent rate; an increase in the child tax
credit from $500 to $1,000 per child; a reduction in the marriage
penalty; and elimination of the death tax.
The
unfair death tax results in the double taxation of a family's hard-earned
assets. Its elimination will lower the tax burden on families, small
businesses, and family farms and promote fairness and economic growth.
Unfortunately, this tax relief expires at the end of 2010. Failure
to make the President's tax cut permanent would increase taxes by
an average of $1,040 for 104 million taxpayers, including workers,
married couples and families with children. In 2011, a median-income
family of 4 would see their taxes increase by $1,866 relative to
an extension of the President's tax cut. Failure to make the death
tax repeal permanent would increase taxes by $103.5 billion.
The
time to fix this problem is now, so American families, small businesses,
and farmers and ranchers can make their plans for the future today,
without needlessly worrying how these plans could be jeopardized
by inaction in the future. Making the tax repeal permanent will
ensure that Americans can make long-term plans when saving for their
children’s education, when undertaking new business ventures,
when planning for retirement, and when planning future contributions
to charity and passing on a family business to their children.
The
Administration urges quick action in the Congress to make the elimination
of the death tax permanent.
Pay-As-You-Go-Scoring
Any
law that would reduce receipts or increase direct spending is subject
to the PAYGO requirements of the Balanced Budget and Emergency Deficit
Control Act (BEA) and could cause a sequester of mandatory programs
in any fiscal year through 2006. The requirement to score PAYGO
costs expires on September 30, 2002, and there are no discretionary
caps beyond 2002. The Administration will work with Congress to
ensure fiscal discipline consistent with the President's budget
and a quick return to a balanced budget. The Administration will
also work with Congress to ensure that any unintended sequester
of spending does not occur.
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