Apr 13, 2005
Washington, DC — April 13, 2005 — “Today’s House vote to make estate tax repeal permanent is extremely important to family businesses, who are forced to operate now in a fiscal-planning twilight zone — uncertain whether the tax will be reinstated in 2011 or merely reformed,” said John J. Motley III, senior vice president of the Food Marketing Institute (FMI).

"The only solution is to kill the federal death tax once and for all,” he said. “It is unfair. It impedes job and economic growth, forcing family business to spend exorbitant amounts for estate planning and costly life insurance to help pay the estate tax bill.

“The death tax threatens business survival, presenting owners with the grim choice to either sell the family company before they die or pass it along to their children with tax liabilities that severely inhibit the opportunity to succeed in today’s hyper-competitive marketplace.”

“Permanent repeal,” he added, “would also provide a powerful long-term economic stimulus. Family businesses create two-thirds of the jobs in the U.S. economy. They have the versatility to meet fast-changing consumer demands. And they are recognized as among the most generous community servants across all industry sectors.

“We applaud the House leadership for recognizing the need to repeal this tax permanently and the more than 260 members who expressed their conviction by co-sponsoring the bill.”