FOR IMMEDIATE RELEASE September 7, 2000

CONTACT: RICH MILLS PHONE: 202-225-2305

Dreier Praises Override Attempt of President Clinton’s
Veto of Bipartisan Death Tax Repeal

WASHINGTON – Praising the House for continuing to fight for tax reform and fairness for all Americans, despite a presidential veto, Congressman David Dreier (R-CA), Chairman of the House Rules Committee, today voted to override President Clinton’s veto of the bipartisan “Death Tax Elimination Act.” The bill, which repeals an unfair tax that penalizes small businesses and family farmers especially hard, was approved in the House in June by a broad majority, 279 to 136, including 65 Democrats. Later during the summer, it was passed by the Senate and sent to the President for his signature. Today’s attempt at overriding the President’s veto failed to reach two-thirds, 274 - 157.

“I am proud of the House’s action today, regardless of the outcome of the vote,” said Dreier. “The Death Tax repeal is all about reform and fairness. It provides much needed tax relief for millions of Americans, many of whom own small businesses and farms. The fact that these Americans are faced with double taxation when a loved one dies is just wrong. Unfortunately, the President doesn’t believe these hard working Americans deserve that relief. We did not prevail today, but Congress will continue to fight for tax fairness for all Americans.”

The “Death Tax Elimination Act,”or H.R. 8, would repeal the estate, gift and generation skipping transfer tax over 10 years. Under the current tax code, the highly burdensome death tax often causes heirs to lose between 37 - 55% of a deceased’s estate to the federal government. Additionally, the heirs must pay for 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.