On Wednesday night, the House tax-writing committee approved a tax cut totaling $864 billion over 10 years. Included in this bill is full elimination of the death tax over a 10 year period. Under the proposal, the death tax would be gradually decreased beginning in 2001 and then fully eliminated in 2009. For inherited assets subsequently sold, a capital gains tax would apply using the original cost basis to determine the amount of the assets' appreciation. The bill includes a number of other provisions of benefit to the construction industry including elimination of the corporate AMT, lower individual and corporate capital gains rates, and tax incentives for investment in depressed communities. More information about the contents of the bill will be forthcoming in an AGC Tax Bulletin. The tax bill could be considered by the full House as early as next week. President Clinton has promised to veto the bill. An explanation of the provision is available in the legislative area of the AGC website .

Senate Rejects Health Care Mandates: The Senate is debating managed care reform legislation this week and has already rejected several mandate-filled amendments contained in the Democrats' "Patients' Bill of Rights." This is good news for employers who would be forced to pay even higher premiums or drop coverage altogether if the mandates were passed into law. The Senate debate is expected to continue into Thursday evening. Thanks to all AGC members who responded to our call to contact their Senators urging opposition to the Democrats' bill.

House Tax Bill Sends Strong Message On Superfund Reform: The House tax bill sent a clear message to the Environmental Protection Agency regarding reauthorization of Superfund taxes. Chairman Archer (R-TX) has agreed to a reauthorization of the taxes only with significant reform to the Superfund program. Little movement has been seen this year on Superfund reauthorization.

Senate May Consider Aviation Bill Next Week: The Senate may finally consider S. 82, the Air Transportation Improvement Act, next week. Funding for the current program expires on August 6.

The bill reauthorizes the FAA and AIP for two years. While the bill provides only small funding increases for aviation programs, Senator Fritz Hollings (D-SC) is working further to increase funding for aviation programs. Please call your Senators and urge them to take up the aviation bill immediately and support Senator Hollings in his effort to spend aviation taxes for their intended purpose. You can reach your Senator through the Capitol Hill switchboard at 202-224-3121.

Senate Environment and Public Works Committee Holds Conformity Hearing: At the conformity hearing this week, AGC called on Congress to pass S. 1053, legislation to reinstate the Environmental Protection Agency. s grandfather clause. Almost 8,000 AGC members could be impacted immediately by noncormfoming state transportation plans in twelve states. The Federal Highway Administration testified that there could be an additional 266 areas that are not in attainment of certain clean air standards. These additional designations could cause additional stoppages without the reauthorization of the grandfather clause. Witnesses at the hearing testified that there would be adverse impacts on highway safety and the environment without this legislation.