March 7, 2012
FLA Member Call to Action
Contact your Representative in the U.S. Congress and urge their support of H.R. 1259, the Death Tax Repeal Permanency Act
The Death Tax law will be reinstated at the rate of 55% on all assets above a $1 million exemption on January 1, 2013 unless Congress acts to permanently repeal the tax.
Congress will act but only if they hear your voice.
We’re asking you to force attention to this important issue by contacting your Member of Congress now about this devastating tax and the unintended consequences it will have on you, your family, and your employees.
FLA supported legislation passed in December 2010 (the Middle Class Tax Relief Act) that repealed the tax entirely, but reinstated the tax in 2011. The current, but temporary, 2011 law set the Death Tax rate of 35% with a $5 million exemption.
Call to Action Needed by FLA Members
H.R. 1259 has strong bi-partisan support and is expected to pass in the House of Representatives this spring.
What the Bill Will Do: Amend the Internal Revenue Code to: (1) repeal estate and generation skipping transfer taxes, and (2) make permanent the maximum 35% gift tax rate and a $5 million lifetime gift tax exemption. (3) Maintain stepped-up in basis provision to protect from high capital gains taxes.
We are calling on FLA members to contact their representatives in the U.S. Congress and urge their support of H.R. 1259.
Click here to see if your member of Congress is already sponsoring H.R. 1259.
Click here to see if you member of Congress is NOT cosponsoring H.R. 1259
If your Member of Congress is not listed as a cosponsor, take action by:
• Writing your Representative a letter encouraging him/her to cosponsor H.R. 1259. Provide personal facts about why their support of H.R. 1259 is important to you and your family.
• Calling your Representative
• Emailing your Representative
For assistance contacting your Congressional Representative, click here to be directed to FLA’s Congressional Action website where you can directly email your Representative and get contact information for calling.
Tell Your Story
You can also help FLA be more effective by telling us your story of how the estate tax has or could impact your ownership or management of your land. We need real life testimony on how this onerous tax has affected you in the past or how it could affect you in the future. We’ll post your response on the website. Your comments will bring this issue to life so please give it serious consideration.
We will share these real life stories with members of Congress. Click here to share your story.
Do the math for your family’s situation. This dramatic and unfair increase will force many private forest landowners to liquidate property (potentially at market lows), alter management plans, and prevent the transfer of property to succeeding generations. A $1 million exemption is not high enough to protect thousands of family forestland operations.
The Death Tax Destroys Family Businesses and Farms
• Fully one-third of all small business owners wind up selling some or all of their businesses due to the death tax.
• Family businesses are often sold off in part or whole to pay the tax.
• 70% of family businesses do not survive the second generation and 87% do not survive the third generation.
Rest assured that the Forest Landowners Association is working the halls of Congress; educating policy makers and their staff about the impact this tax has on private forest landowners and rural America. We will not stop working on this issue, but the voice of forest landowners and rural America is best heard from those of you with personal stories and legitimate concerns.
Telling your story will have an impact. Do not underestimate the value of your voice in Washington!
Building the Momentum
The good news is that a bi-partisan majority of the House of Representatives supports permanent death tax repeal. The bad news is that the White House and current Senate leadership continue to ignore the evidence, the building House position, and the polls that show that two-thirds of the American people support permanent repeal. FLA is working with an allied organization, the American Family Business Institute to ensure overwhelming support and passage of H.R. 1259, the “Death Tax Real Permanency Act of 2011” in the House and convince the U.S. Senate and Administration to act on this issue.