Taxed In The Grave
by Holden Watch
There isn't a rational person alive in America who doesn't understand how unfair it is to tax personal assets that have already been taxed.
But some of them simply don't care about the inequity of doing so.
On Thursday, December 3, 2009, a majority of Democrats in the US House of Representatives, including Tim Holden, passed a bill laughingly named The Permanent Estate Tax Relief for Families, Farmers and Small Businesses Act of 2009 (Roll 929). By doing so, Holden and most of the rest of Nancy Pelosi's House voted to derail the scheduled expiration of the federal death tax for 2010 and, instead, make it permanent.
How's that for relief?
Only the opposition was bipartisan. Not a single Republican voted for the bill. Twenty-six principled Democrats voted against it.
This is not the first time Timmy voted to hose farmers and family-owned businesses. On April 13, 2005, he voted against permanent repeal of the death tax (HR 8, Roll 102).
According to Tim Holden and House Democrats, your reward for living responsibly, paying taxes and saving to pass on assets to your children, your reward for starting and growing a family business while paying taxes and employing other Americans, your reward for working and improving, perhaps expanding a family farm, also while paying taxes, is to be taxed yet again, only, this time, in your grave.
The death tax provides less than 1% of Treasury receipts, a pittance that has hugely disproportionate impact on the unfortunate families who must pay it. Small businesses, farms and homes are lost to families because of the death tax. Jobs are lost. The death tax deserves the death penalty. Tim Holden wants to give it life - permanently.
In other words, you could go to the grave, to your everlasting reward, with Tim Holden's hand in your pocket.
We will hear much from Timmy about the House bill containing a $3.5 million estate exemption. Does that sound like a lot to you? It may. It sounds like a lot to most Americans, but a look at area farm real estate sales transfers reveals that $3.5 million can represent, in some cases, significantly less than 300 acres of prime Central Pennsylvania farmland
- without considering the value of a house, barn and outbuildings. The value of inventory of all types, structures and equipment for a family-owned manufacturing business can exceed $3.5 million very easily
- and often does.
And the bill is not indexed for inflation. Rural land values continue to rise despite the slowdown in the U.S. economy and residential real estate, so even more family farms will be lost as time and generations pass.
Even while its intended victims are living, the death tax greatly distorts investment decisions and causes economically inefficient tax planning for family-owned businesses of all kinds.
So, who benefits from the death tax? Attorneys, financial planners and insurance companies do.
Oh, yes! And politicians. According to Opensecrets.com web site, in the last two election cycles, Tim Holden received upwards of $100,000 in campaign contributions from the financial services industries alone, plus more from lawyers. Is Tim's vote for sale?
Tim Holden's votes have been sold to unions and to Nancy Pelosi, among other interest groups. Why wouldn't we think a prominent member of the Agriculture committee from a mostly rural district willing to turn his back on his constituents once again for a few extra bucks of campaign cash?