June 8, 2000
Rules Committee Approves Death Tax Repeal Bill for House Floor
WASHINGTON - Citing the importance of restoring tax fairness for all working Americans, House Rules Committee Chairman David Dreier (R-CA) announced that the Rules Committee approved floor procedures last night for the consideration of the Death Tax Elimination Act, legislation to gradually phase out the tax that hits small businesses and farmers particularly hard.
"In the new economy, investment and entrepreneurship are critical to sustaining growth," said Dreier. "The small businesses, workers, and farmers that practice these principles should be able to do so free from the worry that their life's work and savings will stripped away by a burdensome federal tax imposed as soon as they die."
The Death Tax Elimination Act, H.R. 8, will repeal the estate, gift, and generation skipping transfer tax within 10 years. As a result of the current estate tax structure, heirs may lose 37 - 55 % of a deceased's estate to the federal government. Dreier pointed to a survey conducted by the National Federation of Independent Businesses (NFIB) that stated:
- more than 70 % of family owned small businesses said they do not survive to the second generation.
- 87% of family owned small businesses do not make it to the third generation.
- 60 % of small business owners said they would be able to create more jobs if estate taxes were eliminated.
"While Republicans continue to pay down the national debt and ensure retirement security, we will also keep fighting for tax fairness for all working Americans," Dreier said. "The Republican Congress is committed to securing America's economic future and continuing our economic prosperity through a pro-growth public policy agenda of tax relief, debt relief, and expanded opportunities in technology and trade. We will continue to work for policies that encourage sound economic principles and fairness, like ensuring that families can pass their accumulated savings on to their heirs."
The Death Tax Elimination Act will be debated under a modified closed rule for a total of two hours, the normal one hour on the rule and one hour of general debate, and provides for consideration of an amendment in the nature of a substitute, if offered by Congressman Charles Rangel (D-NY) or his designee. Further information about the rule is available at http://www.house.gov/rules/welcome2.htm.
# # #