Repeal of the Death Tax

The federal estate tax, commonly referred to as the Death Tax, is a tax on the estate of a deceased person. Essentially taxpayers are paying double taxes as they build their estate and then again as they pass it on to the next generation. The Death Tax acts as a major hurdle, if not outright barrier, to passing down family owned small businesses to future generations.

As part of the 2001 Economic Growth and Tax Relief Act, the threshold amount at which the Death Tax is applied was increased and the tax rate was decreased, leading to an outright repeal of the tax in 2010. However, that elimination will sunset after just one year and the death tax will again be in place at the 2001 levels starting in 2011.

Status of Legislation: Yet to be introduced in 111th Congress.

IEC Position: IEC supports permanent repeal of the Death Tax.

Repeal of 3% Withholding on Government Contracts

In an effort to increase tax compliance by contractors working with the federal government, a 2005 tax cut included a last minute provision to implement a 3% withholding starting in 2011. Section 511 of the Tax Increase Prevention and Reconciliation Act of 2005 requires any local government entity, with annual revenues in excess of $100 million, to withhold three percent of total contract payments until contractors have proven that their taxes are paid full. This move could be crippling to smaller business that typically operate on smaller profit margins.

While this provision will not take effect until 2011, the issue was accelerated by some in Congress who would like to move the effective date up to fund other congressional initiatives.

Status of Legislation: Yet to be introduced in 111th Congress.

IEC Position: IEC opposes this new tax, and supports legislation that seeks to repeal it.

Jul 30, 2010 Debating an extension of the Bush tax cuts (Washington Post) Below are responses from Alan S. Blinder, Mark Zandi, Diane Lim Rogers, Douglas Holtz-Eakin, Leonard S. Burman and Robert Greenstein. Besides, the economy performed admirably during the 1990s when upper-income households paid these same higher tax rates. Everyone knows that our income tax code is...    more...  

Jul 30, 2010 GOP candidates for Tennessee governor attack and defend (The Commercial Appeal) East Tennessee GOP heartland. Wamp and Ramsey moved back into the vote-rich Nashville suburbs Thursday. Haslam and Wamp return to Shelby County today. Wamp is airing two new TV ads, including another featuring "Rusty," the folksy "ordinary Tennessean" saying: "This Bill Haslam ticks me off ......    more...  

Jul 30, 2010 Wonkbook: GOP blocks small business aid; Dems cut food stamps Goldman dodging FinReg (Washington Post) Welcome to Wonkbook.Top StoriesSt. In the real world, businesses exist to create profits for shareholders, not jobs for workers. Margaret Sheehan, a lawyer with the group, says that even if new biomass plants meet all Environmental Protection Agency regulations on air emissions, generation could...    more...  

Jul 30, 2010 Rick Snyder | 'Tough nerd' raises lots of questions (Detroit Free Press) Snyder is counting on a boost from moderate Republicans, independents and a few crossover Democrats to give him an edge over a divided field of conservatives. He has the endorsement of the patron saint of Michigan moderates, former Republican Gov. Job exportation is still a poisonous charge in...    more...  

Jul 30, 2010 Mike Cox | Tie to Kwame Kilpatrick may not matter (Detroit Free Press) After the governor, he has generated more headlines than any other Michigan politician in the last eight years. During the primary campaign, Cox has managed to take the lead in challenging federal health care legislation and supporting Arizona's immigration law, both popular positions with the...    more...  

Jul 30, 2010 Andy Dillon | Moderate tries to work with GOP (Detroit Free Press) Inexperience was a factor in the 2007 budget crisis that produced a $1.5-billion tax increase, brief government shutdown and a short-lived tax on services. In 2009, Dillon was forced to accept a Republican budget plan with major cuts, angering liberals who demanded tax increases. He wrested $400...    more...  

Jul 29, 2010 GOP hands Reid second legislative setback of the week (The Hill) The legislation would have required corporations and unions to disclose their role in funding political campaigns. A GOP senator suggested to Reid that removing the provision sponsored by Sen.    more...  

Jul 29, 2010 Emanuel throws $1.5B life preserver to farmers, aiding Lincoln (The Hill) And I do represent farmers.”Lincoln insisted on inclusion of the $1.5 billion nationwide agricultural assistance program, which includes $50 million for farmers and ranchers.    more...  

Jul 29, 2010 Los Angeles Times George Skelton column (Los Angeles Times) Six pension rollback agreements already have been reached and more are being negotiated. Budget reform? Democrats could accept it. Tax reform? Wrap a bow around Steinberg's idea and call it reform. It would broaden the tax base by slightly flattening the income tax.    more...  

Jul 29, 2010 EDITORIAL (The Orlando Sentinel) Hukill's proven effectiveness, leadership and history of reaching across the political aisle make this contest in southeast Volusia a one-horse race. Ms. She backed offshore drilling, sponsored the bill shielding gerrymandered districts and weakened growth-management laws. Valdes contends...    more...  

Jul 28, 2010 President goes from policy push in N.J. to Manhattan fundraisers (The Hill) Obama on Wednesday traveled through a bleak, industrial setting in Edison, New Jersey to meet with small business owners and push the Senate to act on his small business tax cut and lending package.Hours later, Obama was in Manhattan, attending high-dollar fundraisers at the glitzy Four Seasons...    more...  

Jul 28, 2010 Pearlstein: On tax fight, Obama can't afford to lose (Washington Post) Steven Pearlstein: There is nothing wrong with a modestly progressive rate structure with three or four rates. Steven Pearlstein: if the farm is losing money, yes, you'd need to sell it to pay the taxes. Steven Pearlstein: It is possible stalemate will result in all the Bush tax cuts expiring.    more...  

Jul 28, 2010 Tainted gavel (Politico) Committee chairmen could no longer go their own way. After the demise of Mills, Democratic leaders stripped Ways and Means Democrats of their “committee on committee” authority to appoint Democrats to House committees. Dave Obey of Wisconsin annoyed Rostenkowski and his allies with House...    more...  

Jul 28, 2010 House Dems mull break on Obama's tax pledge (The Hill) That cost is already factored into the administration’s budget projections, which reflect Obama’s proposed policies. This system failed us on all those accounts.”Another Democrat on the Finance Committee, Sen.    more...  

Jul 28, 2010 Slew of Republicans considering run for governor (Lexington Herald-Leader) Jack Brammer Jul. 28, 2010 (McClatchy-Tribune Regional News delivered by Newstex) -- FRANKFORT -- A slew of Republicans are considering challenging Democratic Gov. Neither could be reached for comment Tuesday. Meanwhile, Republican state Rep. He is not related to Bill Farmer. Richie Farmer, who...    more...  

Jul 28, 2010 Winery fights town over concert restrictions (Newsday) NOFO Rock and Folk Festival in Cutchogue, the event's organizers went to court Tuesday seeking to prevent the Town of Southold from imposing new restrictions on the concert. One of the issues in dispute is when the concert must end, according to the event's promoter, Josh Horton, and Southold...    more...  

Jul 27, 2010 McCollum touts property tax freeze for local governments (Tampa Tribune) ...property taxes, keeping them at the same rate. But Republican gubernatorial candidate Bill McCollum says that if elected, he will seek to impose a two-year freeze on property tax rates for local governments across the state. "For the good of Florida's economy, I'm saying we need to take a...    more...  

Jul 27, 2010 What will Obama do if the Republicans take power? (Washington Post) Agree to a major and unpopular deficit reduction package that includes tax hikes? If they just take back the House, Obama can't anger Senate Democrats by shifting his agenda too dramatically. Also, unlike Bush but just like Clinton, Obama can't just obstruct and lose popularity.    more...  

Jul 27, 2010 Gubernatorial candidate Kelliher says seniors need a cap on property taxes (Pioneer Press) She announced her proposal during a campaign stop in Duluth. Kelliher, the DFL endorsee and Minnesota House speaker, is competing with former U.S. Sen. Mark Dayton for the senior vote in the Aug. 10 DFL primary. Tim Pawlenty's cuts to local government aid and refusal to fix disparities in state...    more...  

Jul 26, 2010 Republicans and the U.S. Chamber target new tax-reporting rule in health law (The Hill) Mike LillisSen.    more...