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Congressman John Shadegg Clinton Vetos Tax Relief for Family Owned Businesses
 While members of Congress were back in their districts during
the August recess, President Clinton vetoed the Death Tax Elimination Act,
legislation which gives family businesses and farms much needed relief
from the IRS. This burdensome tax has devastated too many family
businesses, farms and personal savings. No section of the tax code is more
unfair and more dangerous to our entrepreneurial spirit than the death
tax. The death tax is simply double taxation. It punishes people who build
a successful business or farm and try to leave that legacy to their kids.
Nearly 89 percent 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. The Republican Congress voted to repeal this unfair tax on June 9, 2000 by a vote of 279 - 136. Although sixty-five Democrats in the House and a fifth of all Senate Democrats voted with Republicans to eliminate the death tax, there will be an all-out effort by Democrat leadership and the vice president to distort this issue and instead create class warfare. Last week The House of Representatives voted to override President Clinton's veto of the bi-partisan death tax elimination bill. Unfortunately, our veto override was not sucessful and the President and Congressional Democrats have sucessfully denied American farmers and business owners much needed tax relief. The Republican Congress will not give up this critical fight -- now is the time to eliminate the death tax. The economy is thriving and nearly everyone is employed. Thanks to the fiscal discipline of the Republican Congress, we have budget surpluses that allow us to pay down the public debt. If there was ever an opportunity to get rid of a tax that kills family farms and businesses, it is now. It has been said that only in America can one be given a certificate at birth, a license at marriage and a bill at death. The death tax is contrary to the freedom and free-market principles on which this nation was founded. We should be encouraging businesses, especially small businesses, not creating obstacles for their existence. I have a track record of being pro-family and pro-business. And I take family businesses very seriously. When mom-and-pop shops are closing up because of an outdated tax policy, it requires leadership and determination to remedy the situation. I am pleased to be a part of this effort. |