/PRNewswire/ -- Today Family Research Council and the American Family Business Foundation released an important new report analyzing the effects of the estate (or "Death" tax) on jobs, government revenues, and economic growth.
The report, "Repealing Death Tax Will Create Jobs and Boost Economy," combines two recent analyses of the death tax by Douglas Holtz-Eakin, former Congressional Budget Office director, and Stephen J. Entin, president and executive director of the Institute for Research on the Economics of Taxation (IRET).
"The Death Tax kills jobs, family prosperity and necessary federal revenues," said FRC President Tony Perkins. "It is regressive, punitive taxation at its worst, and shows how Washington's impulse to redistribute wealth only produces less growth and greater economic inequity. Put simply, the Death Tax needs to die."
The new report provides compelling documentation for why the death tax should be eliminated or, at the very least, not be raised. Among the reports' findings:
-- Eliminating the Death Tax could create over 1.5 million jobs for
family and small business workers.
-- An increase in the Death Tax rates to 55 percent with only a $1
million exemption would eliminate 500,000 jobs.
-- The distortion the Death Tax causes with respect to other tax
collection methods results in a net revenue decrease for the federal
government. Government could bring in nearly twice the revenue with no
death tax at all.
-- Ending the Death Tax would add $119 billion to GDP. Allowing the rates
to revert to 2001 law, 55 percent with only a $1 million exemption,
would reduce GDP by $183 billion.
-- Ending the Death Tax would boost workers' income by $79 billion.
-- The Death Tax targets America's main economic engine -- small
businesses. Small businesses have been responsible for 60 to 80
percent of all net new jobs in the last decade.
-- Large publicly traded corporations pay no Death Tax at all. Thus,
family businesses undergo repeated trauma as they are passed from one
generation of employers to the next, while their publicly traded
competitors gain a strong competitive advantage.
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