Press Release (June 19, 2003)

Representative Metcalfe introduces legislation to eliminate inheritance tax.

State Representative Daryl Metcalfe (R-12) recently introduced legislation that would completely eliminate the inheritance tax in Pennsylvania. The legislation, House Bill 1632, has 43 House co-sponsors.

"The inheritance tax, which is commonly referred to as the ‘death tax,’ is really a form of double taxation," Metcalfe said. "Pennsylvanians are taxed on their earnings and property when they first acquire them, then, if they pass them on to their children, their children are taxed, as well."

Pennsylvania became the first state to adopt an inheritance tax in 1826. Today, Pennsylvania is one of only 13 states to levy such a tax. In 2000, the legislature reduced the inheritance tax rate on lineal descendants from 6 percent to 4.5 percent. The inheritance tax rate on sibling transfers was reduced from 15 percent to 12 percent.

According to Metcalfe, the inheritance tax has a particularly harmful effect on small businesses and family farms.

"Many family-owned businesses and farms are literally destroyed by this tax after the owner’s passing," Metcalfe said. "To tell a grieving family that they must pay taxes on their loved one’s assets is like kicking them when they’re down."

Kevin Shivers, state director of the National Federation of Independent Business (NFIB), praised Metcalfe, calling the repeal of the death tax "one of NFIB’s top legislative priorities."

"We applaud Representative Metcalfe’s efforts to protect Pennsylvania’s family-owned businesses," he said.

House Bill 1632 has been referred to the House Finance Committee for consideration.

www.PleaseNoMoreTaxes.org

A Project of The Commonwealth Foundation w 225 State Street, Suite 302 w Harrisburg, Pennsylvania 17101

717.671.1901 phone w 717.671.1905 fax w Info@CommonwealthFoundation.org w www.CommonwealthFoundation.org

Note: Nothing written here is to be construed as an attempt to aid or hinder the passage of any bill before the Pennsylvania General Assembly.

© 2003 The Commonwealth Foundation