Final Tax Bill Demolishes Death Tax; House Votes 221-206 to Approve!

This week the House of Representatives passed tax legislation which included gradual elimination of the death tax. The House approved the tax bill by a vote of 221-206. The Senate is expected to approve the same bill. After the August recess, the bill will be sent to President Clinton who has promised to veto it.

Under the proposal, the death tax would be gradually decreased beginning in 2001 and then fully eliminated in 2009. Specifically, the bill provides the following: effective in 2001, the unified credit is converted into a unified exemption and rates in excess of 53 percent are repealed; in 2002, rates in excess of 50 percent are repealed; in 2003 through 2006, all rates are reduced by 1 percentage point per year; in 2007, all rates are reduced by 1.5 percentage points; and in 2008, all rates are reduced by 2 percentage points. Beginning in 2009, the death tax is fully repealed.

Once the tax is repealed, a "carryover basis" regime takes effect for transfers of assets at death. For assets that are subsequently sold by the heir, a capital gains tax would apply and the original cost basis (i.e. carryover basis) would be used to determine the amount of the appreciation. (Under current law, the cost basis for inherited assets’ is the fair market value on the date of the decedent’s death i.e. the asset receives a "step up" in basis.) The bill also includes other provisions of benefit to the construction industry such as corporate AMT relief, lower individual capital gains rates, and tax provisions included in the Community Renewal Act.

House Passes Blunt Ergonomics Measure

On Tuesday, the House of Representatives debated and then passed the Workplace Preservation Act of 1999 (H.R. 987). By a vote of 217-209, the House gave its approval to this important AGC priority. The bill will stop OSHA from issuing an ergonomics regulation until completion of a comprehensive study by the National Academy of Sciences to provide an accurate assessment of which injuries could be prevented with ergonomics regulation. Rep. Roy Blunt (R-MO), chief sponsor of H.R. 987, was especially pleased by Tuesday’s vote. He praised AGC members and others in the National Coalition on Ergonomics for their many letters, calls and visits during the weeks leading up to the vote.

We expect that the Senate companion to H.R. 987 (Senator Bond’s S. 1070) will gain momentum following the House victory. All AGC members are urged to contact their Senators and urge them to co-sponsor and vote for the Sensible Ergonomics Needs Sound Science “SENSE” Act. Call the Senate Switchboard at (202) 224-3121.

House Passes Miller Act Amendments

The House of Representatives passed H.R. 1219, the Construction Industry Payment Protection Act by a margin of 416-0. AGC spearheaded the industry compromise resulting in this legislation's introduction. The bill raises the payment bond to the value of the contract award, allows receipt of notice through any method that provides written, third party verification of receipt, and prevents any waiver of Miller Act to rights prior the commencement of work.

WRDA 99 Conference Concluded

The House and Senate are expected to pass the Water Resources Development Act of 1999 (WRDA 99) conference report this evening.

Aviation Bill Moves Slowly Toward Conference

This evening the House is expected to appoint conferees to the FAA and AIP reauthorization bill. The House will then wait to see if the Senate will appoint conferees before they leave for the August recess.

House Transportation Committee Passes Bill Requiring Stricter Regulation of Trucks:

The House Transportation and Infrastructure Committee unanimously passed H.R. 2679, the Motor Carrier Safety Act of 1999. The bill shifts the responsibility of federal motor carrier safety programs from the Federal Highway Administration to a newly established National Motor Carrier Administration within the U.S.DOT. The bill also makes reforms to the Commercial Driver’s License Program.

House Transportation and Infrastructure Committee Passes Superfund Bill