Dunn Hail Committee Passage of Death Tax Repeal

May 25, 2000
(Washington, D.C.)

Today U.S. Congresswoman Jennifer Dunn (8th Dist.--Wash.) hailed the passage of the Death Tax Elimination Act, H.R. 8. Today the U.S. House Ways and Means Committee marked up H.R. 8; the bill passed 24 - 11. The bill is slated for a House vote the week of June 5th. Introduced last spring by Dunn and U.S. Congressman John Tanner (8th Dist.--Tenn.), H.R. 8 enjoys the broad bipartisan support of 240 cosponsors, including 45 Democrats and 1 Independent. Legislation needs 218 votes to pass the U.S. House.

"The death tax is not a tax on wealth, it is a tax on the accumulation of wealth. That is why death tax repeal is supported by the Black Chamber of Commerce, the Hispanic Chamber of Commerce, and the National Indian Business Council. These organizations understand the devastating impact that the death tax has on the pursuit of wealth and power in our society," said Dunn.

Dunn continued, "Twenty-five years ago, women were given access to business loans and now many are struggling to pass their life's work to their children. According to a study by the National Association of Women Business Owners, women employers spend an average of $1,000 a month on estate planning attorneys and life insurance to prepare for the death tax just to keep the family business in the family. With 44 million Americans trying to get along without health insurance, a majority of them working for small-business owners, that $1,000 a month could go a long way toward providing benefits for employees."

Nearly 89% of the American people believe the death tax is unfair. According to the National Federation of Independent Business (NFIB), one-third of small-business owners today will have to sell outright or liquidate a part of their firms to pay estate taxes. Half of those who must liquidate to settle with the IRS will have to eliminate 30 or more jobs.

According to NFIB, only 30% of family businesses survive to the second generation and 13% make it to the third generation. Sixty percent of small-business owners report that they would create new jobs over the coming year if death taxes were eliminated.

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