“When he vetoed the repeal of the marriage tax penalty, Bill Clinton showed he is not interested in providing tax fairness to 25 million Americans, and now he has come out in favor of taxing death as well,” Lewis said. “This combination of vetoes should make it absolutely clear to the American people that the Clinton-Gore administration is committed to keeping their tax dollars in Washington and creating new federal spending programs.”

   Lewis condemned Clinton’s veto, saying he has ignored the plight of thousands of small business owners who are faced with such a high estate tax burden that their families will be forced to sell off the business to pay the taxes after their death. According to the National Federation of Independent Businesses (NFIB), one-third of small-business owners today will have to sell outright or liquidate a part of their business to pay death taxes.  Half of those who must liquidate to pay the IRS will each have to eliminate 30 or more jobs.

   “The Clinton-Gore administration has demonstrated with this veto that they feel the government has all of the answers for how people should live their lives, and now they have clearly come out against the American value of free enterprise,” Lewis said. “This veto sends a message that Americans building a future for their children and grandchildren are not a part of the Clinton-Gore agenda.

   “President Clinton and Vice President Gore seem to be convinced that the federal surplus is their money, and that any effort to return some of this surplus to the taxpayers is somehow giving that money away,” Lewis said. “This is one more time that Bill Clinton is telling us he knows better than the American people how to run their lives.”

   The House passed the “Death Tax Elimination Act” (H.R. 8) by a vote of 279-136 with 65 Democrats supporting the bill.  The measure repeals the estate, gift and generation skipping transfer tax within 10 years. The plan would also simplify portions of the generation skipping transfer tax rules prior to repeal.  

   Currently the Internal Revenue Service (IRS) can take up to 55% of the value of a family business or farm when the owner dies. This is a form of double taxation, Lewis said, because small business owners and family farmers pay taxes throughout their lifetime.  At the time of death, they are assessed another tax on value of their property.

   According to the NFIB, more than 70% of family businesses do not survive the second generation and 87% do not make it to the third generation.  Sixty percent of small-business owners report that they would create new jobs over the coming year if estate taxes were eliminated.

   The American Farm Bureau estimates individuals, family partnerships, or family corporations own ninety-nine percent of U.S. farms.  About half of farm and ranch operators are 55 years or older and are approaching the time when they will transfer their farms and ranchers to their children.