Estate (or "Death") Tax

CDA Supports Efforts to Make Permanent the Repeal of the Estate or “death” tax.

  • In 2001, Congress enacted legislation (PL 107-16) that made significant changes in the federal estate tax – or “death” tax – over the 2001 to 2009 period by gradually increasing the size of estates exempt from the tax and gradually reducing the tax rate applied.
  • CDA has been supportive of various efforts in Congress aimed at making the repeal of the estate tax permanent. Such action is necessary to ensure the vitality of America’s small businesses – the backbone of our nation’s economy.
  • Our tax laws should encourage rather than discourage the perpetuation of small, family-owned businesses. Under the current tax system, it would be cheaper to sell the family-owned business before death than to pass on the business to one’s heirs.
  • The estate tax costs jobs. Potential employment is lost when business owners decide not to expand or open another store because of the ever looming death tax, and current employment is destroyed when businesses are liquidated to pay estate taxes.
  • The estate tax has a negative impact on current business decisions. Critical resources are diverted away from investing in people and growth, and spent on attorneys, accountants and insurance to assist in the complicated estate planning effort.
  • CDA is committed to bringing certainty and fairness back to the tax system and to America’s families.
  • There are currently a number of legislative initiatives in both the House and Senate aimed at either repealing or reforming the current Estate tax system. CDA supports a full repeal but understands that some lawmakers are promoting a compromise in light of current budgetary constraints.

Visit CDA’s Federal Advocacy Action Center to take action and contact your legislators on the issue.