House Vote Pushes Closer To Estate Tax Repeal

House Vote Pushes Us One Step Closer To Estate Tax Repeal

Tax Estate RepealThe federal estate tax, which has long been opposed by many Americans, was recently abolished by the U.S. House of Representatives with 240 members of Congress voting for the estate tax repeal and 179 voting against it.

Supporters Laud House Vote

Supporters lauded the outcome of this vote, declaring it a victory for small-business owners, including farmers, according to The New York Times. House Speaker John Boehner released a statement, expressing his approval of the vote.

“Family farmers, ranchers and small-business owners work tirelessly to create jobs in our communities, put food on our tables and, God willing, have something to pass on to their children and grandchildren,” he said. “Taking away that opportunity with a massive death tax bill is simply wrong.”

White House Voices Protest

However, the White House viewed the repeal differently, regarding the House vote as an attempt to provide the richest Americans with more money, according to The New York Times. Repealing the death tax would also increase federal budget deficits, the White House emphasized.

Eliminating the provision would cost the U.S. Department of Treasury $269 billion over the course of 10 years, with $14.6 billion of that being lost during fiscal year 2016, according to figures provided by Congress’s Joint Committee on Taxation and reported on by the media outlet.

Many political analysts have been closely watching the creation of tax policy in Washington, with the two parties fighting to protect the interests of different groups. A wide range of fiscal conservatives have been critical of Obama’s tax initiatives.

While Republicans have repeatedly insisted the president compensate for any tax cuts he proposes with a policy that would increase revenue, they do not have any plan to increase revenue to make up for the shortfall created by their proposed estate tax cut, White House Press Secretary Josh Earnest emphasized, according to The New York Times.

Obama noted earlier this month that the Republican plan represents the exact opposite of his desire to cut taxes for low and middle-income families, the media outlet reported. When visiting North Carolina, the president emphasized that repealing the estate tax would benefit 120 households in the Tar Heel State, while his policies would help 44 million people.

With that in mind, the legislation that would repeal the federal estate tax will now go to the Senate, and if the bill survives, it will reach the desk of Obama, who has been highly critical of repeal effortst

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Frank Brunetti has been practicing law for over thirty years in the areas of estate and wealth preservation, tax planning for business entities and complex tax matters. He is admitted to the New Jersey and New York Bars as well as the United States Tax Court. Mr. Brunetti provides representation in federal and state tax matters, IRS controversies, estate and business planning and guidance for the preparation of wills and trusts as well as the administration of estates. For more information, please visit Frank Brunetti's full biography at Scarinci Hollenbeck

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