[Congressional Record (Bound Edition), Volume 155 (2009), Part 22]
[Extensions of Remarks]
[Page 30681]
[From the U.S. Government Publishing Office, www.gpo.gov]




       CONGRESS IS TAKING THE WRONG APPROACH ON ESTATE TAX REFORM

                                 ______
                                 

                            HON. JERRY MORAN

                               of kansas

                    in the house of representatives

                       Tuesday, December 8, 2009

  Mr. MORAN of Kansas. Madam Speaker, farmers, ranchers, and other 
small businesses are the backbone of the Kansas economy. The ability to 
pass a business from one generation to the next is critical to a 
business's ongoing success. Rural America has enough trouble retaining 
a youthful workforce. The estate or ``death'' tax does not aid our 
efforts in promoting long term growth and curbing depopulation.
  A major obstacle to the continuity of a business is the estate tax. I 
have long sought a permanent repeal of the estate tax. This tax 
comprises less than one percent of U.S. revenues, but poses a 
substantial impediment to the growth of family farms and small 
businesses. H.R. 4154, Permanent Estate Tax Relief for Families, 
Farmers, and Small Businesses Act of 2009, does not provide the 
necessary reforms. While the certainty provided by H.R. 4154 would be 
welcome, passage of this legislation reduced the chances to next to 
none that any significant changes will occur to estate taxes in the 
future. I have sponsored an alternative that, for a while, was expected 
to be brought to the House floor. While it does not do all that I would 
like; it is reasonable and continues to have the chance for broad 
bipartisan support.
  While I will continue to look for ways to achieve a full repeal, I 
believe the next best alternative, given today's political and economic 
climate, is H.R. 3905, the Estate Tax Relief Act of 2009. H.R. 3905 
will exempt, from the estate tax, estates worth $3.5 million in 2009, 
increase the exemption to $5 million by the year 2019, and index the 
exemption to inflation to allow it to automatically increase in the 
years following 2019. Enacting exemptions at these levels should 
prevent a majority of Kansas' small businesses from being affected by 
the tax. H.R. 3905 will also reduce the maximum tax rate, for estates 
in excess of the exemption, to 35 percent by the year 2019.
  While I am encouraged to see the House's willingness to address this 
issue, I feel Congress has missed an opportunity. I could not support 
H.R. 4154 because I believe it did not sufficiently address the 
damaging consequences of the estate tax while limiting the chances that 
Congress will ultimately do so. It is apparent that the House is 
currently unwilling to consider a full repeal. Until Congress is ready 
for that discussion, I will continue to work for initiatives that 
alleviate financial pressure from our farmers, ranchers, and small 
business owners.

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