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Congressman Vito J. Fossella
13th Congressional District of New York w Staten Island & Brooklyn
431 Cannon House Office Building w Washington, D.C. 20515 w (202) 225-3371
4434 Amboy Road
w Staten Island, NY 10312 w (718) 356-8400
9818 4th Avenue
w Brooklyn, NY 11209 w (718) 630-5277
FOR IMMEDIATE RELEASE
June 9, 2000 
Contact: Craig Donner (718) 356-5039 
Beeper: (800) 815-2171
www.house.gov/fossella

Death Tax Repeal Important Victory for
Small Business Owners, Residents

Bill Would Help Families Pass On Savings to Children, Grandchildren

Staten Island, NY -- Congressman Vito Fossella (R-NY13) today applauded House passage of legislation that would repeal the death tax, a victory for family-owned and operated small businesses across Staten Island and Brooklyn.

The legislation (H.R. 8) would abolish a tax that, in some cases, has forced small business men and women to abandon their family enterprise because they were unable to pay the exorbitant tax rate placed on the transfer of the business from one generation to another. The bill would eliminate the death tax over 10 years, saving American families an estimated $50 billion annually.

"The time has long since passed that even in death, Staten Island and Brooklyn residents are still subjected to one last tax by the federal government," Fossella said. "The death tax discourages savings, investment and entrepreneurship and punishes those residents who saved for their family's future. After years of pinching pennies just to have a small gift to pass onto their children and grandchildren, residents are shocked to learn that between 37% and 55% of their savings and investments are lost to federal estate taxes. If a small business were to be forced to close because of the death tax, countless employees would also be forced out of work. Repealing the estate tax would ensure economic fairness for all Staten Island and Brooklyn residents while encouraging expanded growth and prosperity for our country as a whole."

Despite the legislation receiving bipartisan support, President Clinton has indicated he would veto the bill. Fossella has called on the White House to join with Republicans and Democrats in repealing the death tax.

"We have a golden opportunity to pass legislation that would provide significant tax relief for so many families in Staten Island and Brooklyn," Fossella said. "Despite passage of the bill, President Clinton has pledged yet again to veto a reasonable and common sense tax relief measure aimed at helping people save more of their money. But even lawmakers of the President's own party recognize that abolishing this tax will benefit middle- and low-income families most."

Despite arguments by the Clinton Administration calling the tax cut too costly, the death tax produced less than 1% of total federal revenues in Fiscal Year 1996.

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