In response to the announcement by the U.S. House Small Business Committee that it will hold a hearing on the estate tax on May 31, Jack Fitzgerald, founder of Americans Standing for the Simplification of the Estate Tax (ASSET), issued the following statement:
“Our coalition is very pleased that the House Small Business Committee has decided to draw attention to the devastating impact of the current estate tax on small businesses. Privately owned businesses are our Nation’s jobs engine, and the estate tax has the potential to wipe those out. It is high time that Congress look at legislative alternatives to the current estate tax, such as the revenue neutral ASSET proposal, which would eliminate the unintended consequences of the estate tax, like job losses and the drain on cash flow occurring from tax avoidance strategies. Under our proposal, it will be easier for private businesses to continue to grow through reinvestment and the distortive effect of the estate tax will be eliminated.”
The hearing, entitled “Planning for the Death Tax: Can Small Businesses Survive?”, will take place before the House Small Business Subcommittee on Economic Growth, Tax, and Capital Access, chaired by Rep. Joe Walsh (R-IL) on May 31st at 10:00am in Room 2350 of the Rayburn House Office Building.
ASSET has been working closely with the Committee staff and Chairman Sam Graves to encourage holding a hearing on the effect of the estate tax, particularly because the “Taxmageddon” deadline looms large and could mean that after December 31, 2012, the estate tax will revert to 55% with a $1 million dollar exemption, a rate not seen since 2001.
Witnesses are expected to testify on the impact of the estate tax facing private businesses already struggling to overcome the recession while still trying to preserve jobs and plan for succession. ASSET is a coalition of private businesses, family farms and ranches founded in order to change the collection method for the Estate Tax, ensuring that the most successful taxpayers pay their fair share but in a far less distortive manner.