WASHINGTON, D.C. – April 16, 2015 – (RealEstateRama) — U.S. Congressman John Katko (NY-24) today announced that the U.S. House of Representatives passed legislation to repeal the federal estate tax, also known as the death tax.
Currently, if an individual’s assets exceed the specified federal exemption amount at his or her death, these assets are taxed at a rate of 40% before they can be passed on to surviving family members. For Central New Yorkers, these “assets” are often a small business or family farm – and a death tax bill only makes a family’s loss even more devastating.
“Family farms and small businesses are a critical driver of economic growth in Central New York,” said Rep. John Katko. “Many of these families and small business owners have worked hard for years to pass on opportunity to their children – and today’s legislation will prevent them from being penalized at death by onerous tax regulations.”
Because family farms and locally-owned businesses find it difficult to come up with the cash to pay the estate tax, they are often forced to liquidate the business or farm to pay the tax bill. Death tax revenue accounts for only a small fraction of federal revenue, while the impact on local families and farmers can be enormous.
“Repealing the estate tax has long been a priority of New York Farm Bureau. Most of a farmer’s assets are tied up in the very foundations of the farm. Yet, the surviving members of farm family may have to sell off land or equipment just to pay a death tax. This only impedes a family’s ability to pass on the farm to the next generation. I appreciate Rep. Katko’s vote to bury the death tax,” said Dean Norton, New York Farm Bureau president.
In addition to repealing the federal estate tax, the House this week passed a number of tax reforms, including nine bills to end IRS abuse and H.R. 622, the State and Local Sales Tax Deduction Fairness Act.
“Tax Day is a daunting deadline for many Central New York families – but also a reminder that our cumbersome tax code needs serious, comprehensive reform to empower and save more money for the hardworking men and women, small business owners, and farmers across NY-24,” concluded Congressman Katko. “I’m proud to take this opportunity to work towards a fairer and simpler tax code with lower rates and fewer loopholes to create a healthier economy, more jobs, and greater opportunities.”
Congressman John Katko represents the 24th Congressional District of New York, which includes all of Onondaga, Cayuga, and Wayne Counties and a portion of Oswego County. For more information, please visit https://katko.house.gov or follow along on Facebook and Twitter.
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