FOR IMMEDIATE RELEASE
July 23, 1999
CONTACT:
Dennis S.
Day: (202) 383-2710
Phil Thoden: (202) 383-2764
HOUSE VOTES TO DEMOLISH THE DEATH TAX
Full
Senate Action Expected Next Week
Washington, D.C. – As a part of the $792 billion tax
cut voted on yesterday by a margin of 223-208, the House of
Representative’s bill included a provision to Demolish the
Death Tax. The Associated General Contractors of America
(AGC), who made elimination of the death tax their number one
legislative priority for the 106th Congress,
praised the members who voted for the tax cut bill.
AGC Executive Vice President and CEO Stephen E. Sandherr
said, "The death tax kills construction companies by
confiscating up to 55% of their assets upon the death of the
company owner. This is an unfair tax, particularly in a time
of federal budget surplus. Family-owned construction companies
and their employees thank Chairman Archer and those Members of
Congress who voted to Demolish the Death Tax."
Under the House proposal passed yesterday, the death tax
would be gradually phased out over a ten-year period.
Beginning in 2009, the death tax would be fully repealed. The
bill also eliminates the "step-up in basis" for inherited
assets. Under this change, a larger capital gains tax would be
paid on inherited assets subsequently sold because the
original cost basis (i.e. carryover basis) would be used to
determine the amount of the asset's 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 next step in Demolishing the Death Tax comes next week
(July 26-30) when the full Senate will consider a more modest
proposal passed earlier this week by the Senate Finance
Committee.
The Associated General Contractors of America is the
nation’s largest and oldest construction trade association,
founded in 1918. AGC represents more than 33,000 firms,
including 7,500 of America’s leading general contractors, and
12,000 specialty-contracting firms. Over 14,000 service
providers and suppliers are also associated with AGC, through
a nationwide network of chapters.
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