WASHINGTON, April 16 (UPI) -- The House of Representatives voted Thursday to repeal the so-called federal death tax, a move Democrats say would benefit fewer than 5,500 families in the country, or 0.2 percent of Americans, all multimillionaires.
The Republican majority voted to repeal the federal estate tax 240 to 179, saying the tax prevented small business owners and farmers from willing their businesses to their heirs. Currently, deceased individuals owning estates worth $5.4 million or more are taxed at 40 percent before assets can be inherited by family members.
The Obama administration threatened to veto any bill repealing the estate tax, saying it is "fiscally irresponsible" and "would add $269 billion to the deficit over ten years."
"The bill would worsen the Nation's long- term fiscal challenges, jeopardizing programs and investments important to the middle class and national security," the White House said, adding it is "inconsistent with the budget resolution passed by the House of Representatives that same day, which depends on current law estate tax revenues to meet its purported fiscal goals."
U.S. Rep. John Katko, a New York Republican, said the tax is an unfair burden that forces some families to liquidate family farms or businesses to pay taxes.
"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," he said.
