Reynolds Urges Clinton to Sign Death Tax Repeal

FOR IMMEDIATE RELEASE

23 August 2000

CONTACT: Michael Brady

(202) 225-5265

michael.brady@mail.house.gov

Reynolds Urges Clinton to Sign Death Tax Repeal
The American Dream shouldn’t be a Nightmare on Elm Street, Congressman says

With legislation to repeal the so-called “Death Tax” hitting President Clinton’s desk today, U.S. Representative Thomas M. Reynolds, R-NY27, is urging the White House to sign the measure into law to “stop Uncle Sam from becoming the Grim Reaper.”

“The death tax has turned the ‘American Dream’ into ‘The Nightmare on Elm Street’,” said Reynolds, who began action on the House floor in June that led to the measure’s overwhelming 279 to 136 approval. “It’s time to bury this unfair, anti-family tax once and for all.”

According to the National Federation of Independent Businesses (NFIB), nearly 60 percent of business owners say they would add more jobs over the coming years if death taxes were eliminated. The Farm Bureau, which represents the nation’s agricultural community, has made death tax elimination its number one legislative priority. The “Death Tax Elimination Act” (H.R. 8) repeals the estate and gift tax - which can tax the value of an estate by as much as 55 percent - within 10 years.

“The death tax is destroying family-owned farms and ranches, and forcing farmers and ranchers to sell off land, buildings or equipment otherwise needed to operate their businesses,” Reynolds said. “And when those farms and ranches disappear, the rural communities and businesses they support also suffer, and a piece of community and family history is lost forever.”

Reynolds, who is a co-sponsor of the House bill, noted that some studies have found that it may cost the government and taxpayers more in administrative and compliance fees than it raises in revenue. One study completed by the Public Policy Institute of New York reported that in the past five years, family-owned and operated businesses on spent an average of $125,000 per company just on tax planning. These costs are incurred prior to any actual payment of Federal Estate Taxes.

The study also found that an estimated 14 jobs per business have already been lost in New York state as a result of Federal Estate Tax planning. For the 365 businesses surveyed, the total number of jobs already lost due to the Federal Estate Tax would be over 5,100.

““Benjamin Franklin once noted that ‘in this world, nothing can be said to be certain except death and taxes’,” Reynolds said. “But if President Clinton doesn’t sign this measure into law, only taxes will be immortal.”

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