WEEK ENDING JULY 2, 1999

Archer Outlines House Tax Bill,
Including Estate Tax Relief

Archer discusses "broad-based" tax bill. Two weeks prior to the scheduled House mark up of tax cut legislation, House Ways and Means Committee Chairman Bill Archer (R-TX) outlined some of the tax items that he intends to include in his bill. Archer said his bill will focus on "broad-based" tax relief, rather than on targeted tax cuts. While Archer failed to discuss specific proposals, he did commit to "greatly reducing" the federal estate tax. The Committee is scheduled to begin marking up Archer's bill on July 14. The mark up is expected to last at least two days. Under the budget resolution passed earlier this year, the Ways and Means committee has until July 16 to pass out a tax bill. House Democrats are not expected to support Archer's tax bill.

House bill may include estate tax phase out. The Dunn/Tanner estate tax phase out bill (H.R. 8) likely will serve as the model for estate tax relief included in the House tax bill. The legislation, sponsored by Representatives Jennifer Dunn (R-WA) and John Tanner (D-TN) phases out the estate tax over a ten year period. AIADA supports the Dunn/Tanner bill and has worked to garner cosponsors for the legislation.

Bipartisan push for Senate tax bill. While the size and scope of the Senate tax bill remain unclear, a more bipartisan spirit among Senate Finance Committee members has emerged. Unlike the House, numerous Senate Democrats have spoken out in favor of tax cut legislation. The Senate Finance Committee has until July 23 to report out a tax bill.

Senators push estate tax repeal. In a letter to Senate Majority Leader Trent Lott (R-MS) and Senate Finance Committee Chairman Bill Roth (R-DE) twenty-eight Senators urged them to include S. 1128, the estate tax repeal bill sponsored by Sen. Jon Kyl (R-AZ). In lieu of the death tax, the Kyl bill would tax the assets only if they are sold and at a capital gains tax rate generally no higher than 20 percent. Ten Senators have cosponsored the Kyl bill, including seven members of the Senate Finance Committee.

AIADA sends estate tax alert to dealers. AIADA has sent an alert to all dealers encouraging them to meet with their Members of Congress over the July 4 recess and urge their Member to support eliminating the estate tax as a part of the tax bill.

Quote of the Week:
"Washington, D.C., is going to have
a summer curfew for teenagers
-- and all these years President
Clinton has been free on his
own recognizance."
National Review, July 12, 1999

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