January 30, 2017

MSCI Joins Coalition Letter Pushing For Repeal Of The Federal Estate Tax

As part of the Family Business Coalition, the Metals Service Center Institute and more than 100 other organizations last week sent a letter to Sen. John Thune (R-SD) and Rep. Kristi Noem (R-SD), supporting their legislation that would repeal the federal estate tax.

The letter, which can be found here, argues that repealing the estate tax would spur job creation and increase economic growth. It notes that many studies have quantified the potential job growth that would result from estate tax repeal. For example, last year the Tax Foundation found that the United States could create more than 150,000 jobs by repealing the estate tax. A 2012 study by the U.S. House Joint Economic Committee found that the death tax has destroyed more than $1.1 trillion of capital in the U.S. economy and argued that loss of small business capital led to fewer jobs and lower wages. Additionally, Lawrence Summers, former secretary of the Treasury under President Bill Clinton, Alicia Munell, a member of President Clinton’s Council of Economic Advisors, Joseph Stiglitz, a Nobel laureate for economics, and Douglas Holtz-Eakin, former director of the Congressional Budget Office, all have published work that outlines the estate tax’s stifling effect on job growth and the economy as a whole. 

The letter concludes, “The negative effects of the estate tax make permanent repeal the only solution for family businesses and farms.”