FOR IMMEDIATE RELEASE August 24, 2000

CONTACT: RICH MILLS PHONE: 202-225-2305

Dreier Calls on President Clinton to Sign Bipartisan Death Tax Repeal

America’s Small Businesses and Family Farmers Penalized by Unfair Tax

WASHINGTON – Calling it a "grossly unfair tax that penalizes small businesses and family farmers," Congressman David Dreier (R-CA), Chairman of the House Rules Committee, today called on President Clinton to sign into law the bipartisan "Death Tax Elimination Act" which House Speaker J. Dennis Hastert (R-IL) sent to the White House today. The House approved the bill in June by a broad majority, 279 to 136, including 65 Democrats, and recently reached agreement with the Senate on a final package.

"This bipartisan bill repeals a very unfair part of our tax code - a section that actually taxes people and their life’s work when they die. Millions of Americans should not have to hire expensive lawyers and accountants to protect their family business or farm," Dreier said. "The death tax hits one of our economy’s most successful parts - small businesses and entrepreneurs."

Within 10 years, H.R. 8 repeals the estate, gift and generation skipping transfer tax. Currently, this form of double taxation causes many heirs to lose between 37 - 55% of a deceased’s estate to the federal government. Many are forced to purchase expensive insurance policies or hire lawyers and accountants to protect a lifetime’s work and assets. A recent survey conducted by the National Federation of Independent Businesses (NFIB) stated that:

• more than 70% of family owned small businesses said they do not survive to the second generation.
• 87% 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.

Dreier noted that the bill, which garnered significant amounts of liberal Democratic support, would be of particular benefit to minority-owned small businesses, who often have less financial resources to pay the federal death tax.