Capito Votes to Kill the Death Tax

Capito Votes to Kill the Death Tax

Rep. Shelley Moore Capito (R-WV) today voted to provide permanent estate tax relief for West Virginia farmers and small business owners. The legislation, the Permanent Estate Tax Relief Act of 2006 (H.R. 5638) was approved by the U.S. House by a bipartisan vote of 269 - 156.

Without Congressional action, current law that provides relief from the estate tax, or the "death tax" as it is often called, will expire in 2011, subjecting many West Virginia farms and small businesses to a whopping 55 percent tax of property and assets if a family business is handed down from one generation to the next.

"I believe that West Virginians are taxed enough," said Rep. Capito. "The government taxes individuals on nearly everything they do from morning until night. I think it's wrong for the government to try to take more after you've passed away - especially when you've already been taxed on everything you own."

The legislation increases the exemption amount to $5 million per person, effective January 1, 2010, allowing family run businesses to be passed along to the next generation without excessive penalties. Estates valued at more than $5 million will be taxed at the capital gains tax rate, currently a much more realistic rate of 15 percent, as opposed to 55 percent if no legislative action is taken. Further, estates valued at even higher levels will be taxed at twice the capital gains rate.

Capito added, "West Virginia's economy depends largely on family operated small businesses and farms. This legislation provides the certainty to the tax code that is critical to long-term planning and investment decisions, both of which are critical to job creation."

http://capito.house.gov/press_office/detail-page.aspx?id=185&whichone=pr