Obituary Lauds Death of Estate Tax

House Speaker Lauds Death of Estate Tax
Obituary Highlights Punitive Nature of Death Tax’s Life



‘Death’ Tax

The estate tax, commonly known
as the ‘death’ tax, died Dec. 31,
2009 in Oklahoma at the age of 74.

It was born in 1935 and has been
one of the most unjust forms of
revenue generation ever concocted
and is a classic form of double
taxation.

The death tax is survived by
countless heirs and business
owners who no longer have to
worry about having to pay an extra
“estate” tax on property upon
death of a loved one, especially
those in rural Oklahoma.

The tax has been gradually
eliminated over the last few years,
with full repeal occurring Jan. 1.

“When people lose a loved one,
they suffer enough without facing
a new tax burden, especially one
that could potentially force the
sale of a family farm or business,”
said House Speaker Chris Benge,
R-Tulsa.

The death tax is a tax on the net
estate of a decedent. “There is no
reason why Oklahomans, who have
paid taxes their whole lives, should
force their loved ones to pay an
extra ‘estate’ tax on their property
upon death,” Benge added.

As recently as 2004, before the
Legislature began the phase-out of
the death tax, Oklahoma families
lost over $111 million to this scheme.

“This change will allow family farms
and businesses to survive as they are
handed down to the next
generation,” said Benge.

Unlike in Washington, where the
death tax has been repealed just
for 2010 and will need
Congressional reauthorization for
the repeal to continue, Oklahoma’s
death tax no longer exists as of
Jan. 1.

“There are plenty of challenges each
day for family farms and small
businesses without having to worry
that the state’s death tax burden
will make it even more difficult,
if not impossible, for the next
generation to continue the family
business,” said Rep. Jeff Hickman,
R-Fairview and chairman of the
House Revenue and Taxation
Committee.

“These type of
operations may have significant
assets but a razor thin cash flow,
making the sale of land that has
been in the family for generations
or the liquidation of a small
business the only way to pay
the estate tax.

“The U.S. Congress should follow
Oklahoma’s lead and permanently
bury this unfair double-taxation
scheme that threatens farmers,
ranchers and small business
owners who are the backbone
of our American economy and
who have paid their taxes once
already on what they own,”
Hickman concluded.

A service of celebration will be held
on each Oklahomans’ tax return next
year who will no longer be forced to
pay this punitive tax.

Death Tax Repeal Gains House Approval

Members of the Oklahoma House of Representatives voted today to speed up the elimination of Oklahoma's death tax.

"The death tax is simply immoral and the sooner we get rid of it, the better," said state Rep. Rob Johnson, House author of the measure. "Families shouldn't have to face both the undertaker and the tax collector in the same week."

Senate Bill 1383, by state Sen. Mike Johnson (R-Kingfisher) and Rep. Johnson (R-Kingfisher), would accelerate the repeal of Oklahoma's
death tax, also known as the "estate tax."

Currently, the state death tax is set to be repealed beginning January 1, 2010. Senate Bill 1383 advances the repeal to January 1, 2009. The measure would save grieving families an estimated $30.2 million per year.

"Most Oklahomans believe that if you work hard and play by the rules, you should have the chance to be successful and eventually provide a better life for your children," Rep. Johnson said. "The death tax essentially robs families of the American Dream and I'm pleased that my colleagues have joined me in eradicating it."

Senate Bill 1383 passed the Oklahoma House of Representatives on an overwhelming, bipartisan 73-22 vote. It now returns to the state Senate.