Business organizations applaud bipartisan vote to repeal death tax

The National Association of Manufacturers hailed the 274 to 154 vote April 4 by the U.S. House of Representatives to repeal the estate tax.

The organization stated that "family businesses look forward to the day when they can invest in new technology, increased productivity and more jobs, instead of lawyers, financial planners and accountants."

"We are particularly happy that the House turned away an attempt to water down the president's death tax repeal proposal. Congress tried reform instead of repeal, as recently as 1997, by creating a larger exemption for small businesses and farms," said NAM Executive Vice President Michael E. Baroody, in a release.

"This effort failed miserably. Less than 3 percent of family businesses can qualify for the 1997 exemption."

He added that NAM urges the Senate to move swiftly to enact death tax repeal, as well as each of the other components of President George W. Bush's $1.6 trillion tax-relief plan.

Both the Missouri Chamber of Commerce and the U.S. Chamber of Commerce also applauded the House vote on the estate tax issue.

"Congress has recognized the fundamental unfairness of an additional tax of as much as 55 percent on the previously taxed assets of business owners and farmers upon their death," said Thomas Donohue, president and chief executive officer of the U.S. Chamber, in a separate release.

The Joint Economic Committee of the Missouri Chamber of Commerce estimates that the existence of the estate tax this century has reduced capital stock of the economy by $497 billion, or 3.2 percent, stated a news release from that organization.