Session: State Capitol, Room 214 Juneau, AK 99801-1182 Toll Free: (800) 565-3742 Phone: (907) 465-3743 Fax: (907) 465-2381 Personal Web Site: www.repjames.org Interim: post office: PO Box 56622 North Pole, AK 99705 Phone: (907) 488-9339 Fax: (907) 488-4271 location: 3340 Badger Road Beaver Brook Mall, Suite 290 North Pole, AK 99705 Phone: (907) 488-1546

Sponsor Statement for HJR 35
Repeal Estate Tax

Relating to urging the United States Congress to amend the tax code to permanently repeal the death tax.

HJR 35 requests that Alaska's Congressional delegation "support, work to pass, and vote for the permanent repeal of the death tax."

Since 1996 Congress has voted twice to repeal this 85-year-old tax. Currently, there are two major pieces of legislation being considered by Congress to repeal the tax (H.R. 330 and S. 275).

There is significant economic evidence to support the repeal of this regressive tax. A study completed by William W. Beach, a John M. Olin Fellow in Economics, has shown this tax disproportionately hurts:

• Women & minorities
• Farmers
• Workers
• Low-income people
• Small Businesses

Further, this same study found that this tax is more costly to collect than the revenue it generates. A 1994 analysis clearly demonstrated that "total compliance costs (including economic disincentives) amount to 65 cents for every dollar collected." The additional compliance costs means that in 2000 the $27.8 billion collected actually cost the American taxpayers $36.4 billion.

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