WASHINGTON -- Chairman Bill Archer (R-TX) today announced that the Ways and means Committee will markup a bill next week to phase down rates and repeal the Federal estate, gift, and generation-skipping transfer tax over the next 10 years. The bill is expected to be considered by the House of Representatives as early as the week of June 5th. The estate tax is commonly-referred to as the "death tax," since it is generally triggered solely by death.

"No American -- no matter their income -- should be forced to pay 60% of their savings, their business,m or their farm in taxes when they die. Clearly, no American should have to visit the undertaker and the IRS simultaneously. The death tax has outlived any worthwhile purpose, and the time has come for us to bury it once and for all. Death by itself should not trigger a tax," said Chairman Archer.

Phase Down Rates and Repeal the Estate Gift, and Generation-Skipping Transfer Tax: The plan will phase down rates and repeal the federal estate, gift, and generation-skipping transfer taxes within 10 years. The plan would also simplify portions of the generation-skipping transfer tax rules prior to repeal. Except for changes in the phaseout schedule, the bill the Committee will consider next week takes almost the exact approach to repealing the death tax that Congress included in last year's Taxpayer Refund and Relief Act of 1999 which was vetoed by President Clinton. A cost estimate for the new bill is not available, but for reference, the title to repeal the estate tax in the Taxpayer Refund and Relief Act was $65 billion over 10 years.

• A similar bill to repeal the estate tax sponsored by Reps. Jennifer Dunn (R-WA) and John Tanner (D-TN) currently has 237 cosponsors, including 44 Democrats.

• 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 firm to pay estate taxes. Half of those who must liquidate to pay the IRS will each have to eliminate 30 or more jobs.

• 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.

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

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