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RYAN VOTES TO PRESERVE JOBS, END DEATH TAX

WASHINGTON – Citing concerns over the way the federal estate tax – commonly known as the "death tax" – affects small businesses throughout southeastern Wisconsin, First District Congressman Paul Ryan today voted in favor of legislation that would phase down rates and repeal this tax over the next ten years. Ryan cosponsored today’s measure, the Death Tax Elimination Act of 2001 (H.R. 8), which passed in the House of Representatives by a vote of 274-154.

"The last thing that families who have just lost a loved one should have to think about is the IRS," said Ryan. "Like other forms of double taxation, the death tax is simply unfair. People who have worked hard their whole lives to build up successful farms or businesses – paying taxes all along the way – should be able to pass these on to their children and grandchildren without getting socked with yet another round of taxes when they die."

"The death tax doesn't just hurt the people who pay it," said Ryan. "It's a job killer. The tax has a ripple effect that winds up hurting average workers. It can have a devastating impact on small businesses, leading to cutbacks and possible job loss. By doing away with this destructive tax, we can clear the way for families to expand their businesses or farms and hire more workers, instead of doing the opposite."

Currently, the Internal Revenue Service (IRS) can impose rates up to 60 percent of the value of a family business or farm when the owner passes away.

According to the National Federation of Independent Business (NFIB), one-third of small-business owners today will have to sell outright or liquidate a part of their business to pay death taxes. Half of those who must liquidate to settle with the IRS will each have to eliminate 30 or more jobs. More than 70 percent of family businesses do not survive the second generation.

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