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August 28, 2006
NFIB Press Release: Small Business Praises Governor, Legislature for Work to Repeal Death Tax
State's Harmful Death Tax to be Removed from the Books on July 1, 2007
Contact: Gordon Dixon (804)377-3661
Jim Brown(615)874-5288
FOR IMMEDIATE RELEASE
RICHMOND, Aug. 28, 2006 The National Federation of Independent Business, Virginia's leading small-business advocacy group, today thanked Gov. Tim Kaine and the Virginia Legislature for agreeing to end the state's egregious death tax, which is also known as the estate tax. Earlier today, the House of Delegates accepted the governor's recommendations to HB 5019, and the Senate did the same shortly thereafter to its bill, SB 5019.
"Repealing Virginia's death tax shows our leaders understand certain taxes cross the line," NFIB/Virginia State Director Gordon Dixon said. "For too long, Virginia's death tax has been a double hit on small businesses, farmers and families. Small-business owners were proud to stand firm with a diverse coalition to ensure our elected officials would follow through on this important free-enterprise issue. NFIB applauds Governor Kaine, Senator Tommy Norment, Delegate Bob Tata and other leaders for helping to ensure the Commonwealth preserves its reputation for job creation and investment in communities."
Dixon said Tata's and Norment's staunch backing of the bills was critical to full repeal of Virginia's double tax on small-business owners and farmers. Earlier this year, both chambers voted overwhelmingly in bipartisan fashion to repeal the death tax, but they produced different versions. Through the end of June and early July, the House and Senate worked out their differences before the governor introduced an amendment making changes to the land preservation tax credit. Today, both chambers accepted the governor's recommendations.
Dixon said persistent communication from NFIB members at the grassroots level was vital to the bill's passage. Hundreds of NFIB activists called their legislators to act on the bills at key junctures and wrote timely opinion editorials and letters to the editor in newspapers calling for reform.
"Small-business owners and farmers simply refused to let this issue go away," Dixon said. "They know an unfair tax when they see one, especially one that dampens job creation and community investment."
Dixon praised the extraordinary work done by Virginians for Death Tax Repeal, a 60-member coalition that included the Virginia Farm Bureau, to ensure this issue was addressed.
The new law will eliminate the Commonwealth's death tax for estates of persons who die on or after July 1, 2007. Among other provisions, the bill also makes several changes to the land preservation tax credit, including limiting the amount of tax credits that can be issued in each calendar year to $50 million in calendar year 2007 and $75 million per year beginning with calendar year 2008 and thereafter.
For more information, please visit http://leg1.state.va.us.
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NFIB is the nation's leading small-business advocacy association, with offices in Washington, D.C. and all 50 state capitals. Founded in 1943 as a nonprofit, nonpartisan organization, NFIB gives small- and independent-business owners a voice in shaping the public policy issues that affect their business. NFIB's powerful network of grassroots activists send their views directly to state and federal lawmakers through our unique member-only ballot, thus playing a critical role in supporting America's free enterprise system.
NFIB's mission is to promote and protect the right of our members to own, operate and grow their businesses. More information about NFIB is available online at www.NFIB.com/newsroom.
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