WASHINGTON -- U.S. Rep. Maurice Hinchey (D-NY) today voted to uphold President Clinton's veto of a Republican bill to cut estate taxes for the wealthiest Americans. Hinchey has supported an alternative plan to reform the estate tax, which would exempt small business owners and family farmers from the tax sooner than the Republican bill.

"I want sensible estate tax relief to ensure that owners of small family businesses and family farms can pass their assets on to their heirs," said Hinchey. "But we need to keep this in perspective: the Republican estate tax legislation does nothing for the vast majority of Americans. The estates of only 2 percent of Americans pay any estate tax at all, and only 3 percent of those estates are small businesses or family farms. We could pass a reasonable estate tax relief bill tomorrow that the President would sign, but the Republican leadership refuses to do so."

Hinchey has voted for a Democratic plan to cut estate taxes for small business owners and family farmers with estates valued at less than $2 million for individuals and $4 million for couples. Because it is smaller and less costly, the Democratic plan is able to deliver relief quicker than its Republican counterpart, while preserving our ability to strengthen Social Security and Medicare, pay down the federal debt, and provide tax cuts targeted for middle-income families.

The House voted today to override President Clinton's veto of the Republican estate tax bill, but fell 14 votes short of the necessary two-thirds margin. The President vetoed the bill last week, insisting that it was too costly and benefited too few people.

The Republican estate tax repeal will cost $104.5 billion over the first ten years, with the cost exploding to $750 billion between 2011 and 2020. Democrats have argued that this will be unaffordable at a time when the Baby Boom generation will be preparing to retire, and resources will be needed to preserve Social Security and Medicare. Hinchey pointed out that more than half the benefits of the Republican bill would go to the wealthiest one-tenth of one percent of American families.

"According to IRS data, fewer than 100 people in the 26th Congressional District paid the estate tax last year," said Hinchey. "I'd like to reform this tax, but I can't vote for the Republican version that amounts to a huge windfall for the wealthy at the expense of working people. Their bill would drain the projected budget surplus without making the needed investments in the future of all Americans."

Hinchey has twice voted for the Democratic estate tax plan, which eliminates the tax for 95 percent of family farmers and 88 percent of small business owners who would be subjected to this tax. The Democratic alternative provides most of its estate tax relief immediately, while the Republican plan forces farmers and small businesses to wait until 2010 for tax relief. The Democratic bill favored by Hinchey costs one-fifth the amount of the Republican plan when fully phased in.

Hinchey argued that the Republican congressional leadership had its priorities misplaced.

"There are far more pressing issues to be addressed," said Hinchey. "We should be working to raise the minimum wage. We still haven't passed a Patients Bill of Rights or a prescription drug benefit for the elderly. And we need to maintain our commitment to strengthening education and protecting the environment. The Republicans do none of this. In fact, they jeopardize our ability to pay down the debt and shore up the solvency of the Medicare and Social Security trust funds. Instead of pushing for their risky tax scheme, which they know the President will never sign into law, the Republicans should start focusing on ways to help ordinary people through targeted tax relief and strategic investments in our future."