House Votes to
Demolish The Death Tax!
The House of Representatives this afternoon passed a
$792 billion tax cut bill that completely phases out the
death tax over a 10-year period. The final vote tally
was 223-208. 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 asset. s
appreciation. The bill also includes other provisions of
benefit to the construction industry such as elimination
of the corporate AMT, lower individual and corporate
capital gains rates, and tax incentives for investment
in depressed communities. Meanwhile the Senate Finance
Committee this week passed a separate tax cut package
that includes more modest death tax relief. Under the
Senate plan, the highest death tax rate would be 50% in
2001. Beginning in 2004, the unified credit would be
replaced by a true exemption equivalent to the current
exemption schedule, and beginning in 2007 the exemption
would increase from $1 million to $1.5 million. The full
Senate will consider the Finance Committee bill
beginning next week.
Environmental Protection Agency (EPA) Cancels
Transportation Partners Program: Facing intense
political scrutiny for funding organizations whose only
goal was to reduce automobile use and obstruct road
projects, EPA Administrator Browner conceded in a letter
to Senator Byrd (D-WV) that the program was unbalanced
and unaccountable. EPA will begin to replace the program
with the Transportation Environment Network that will
focus on reducing pollution from vehicles, rather than
forcing vehicles off the roads. AGC plans to work with
the Transportation and Environment Network to harmonize
EPA. s transportation and environment policy.
Nationwide Permit (NWP) Deadline Extended: The
Corps of Engineers reproposed the modification to the
Nationwide Permits due to the overwhelming number of
comments received on the initial proposal earlier this
year. In addition to proposing modifications based on
comments received, the Corps will allow NWP 26, the
current general permit, to continue until December 31.
Comments on the proposal are due September 7.
Congress Restricts Kyoto Protocol Spending:
The House Appropriations Committee approved language on
the foreign operations spending legislation to prohibit
funding of the Kyoto Protocol by the Administration. The
Protocol is an international agreement attempting to
curb so-called greenhouse gas emissions. Fundamentally
flawed, the agreement fails to include some of the worst
and largest polluters in the world like China, Brazil,
and India. The Clinton Administration signed the climate
change treaty in November 1998, but has not submitted it
to the Senate for approval.
Talent Spotlights Problems with Safety and Health
Program Standard: On Thursday July 22, House Small
Business Committee Chairman Jim Talent (R-MO) hosted an
important hearing on OSHA. s proposed Safety and Health
Program standard. The hearing focused attention on AGC.
s criticism of the proposed standard and its potential
harmful effects on America. s small and family-owned
construction firms. OSHA Secretary Charles Jeffress, a
witness for the Administration, noted that many AGC
member firms currently do use written safety and health
programs developed specifically for their own company,
its employees, and unique circumstances. However, AGC is
concerned that this "Washington-knows-best" initiative
may actually undermine these existing voluntary plans.
According to an independent report commissioned by
the Small Business Administration, this regulation would
impose over $7.4 billion in new annual compliance costs
on over four million small businesses. Although AGC of
America is dedicated to increasing worker safety, AGC
cannot support uniform federal standards which will
surely stifle innovative approaches to workplace safety
and compromise the ability of employers to tailor their
management techniques to meet the safety demands of
their business.