DEATH TAX REPEAL CLEARS CONGRESS President Pledges Veto as Politics Heat Up An AIADA-backed bill for death tax repeal (H.R. 8) passed the Senate earlier this month by a vote of 59-39. This bill mirrors legislation passed by the House on June 9, and follows intense lobbying by AIADA and other family-owned business groups. AIADA is working for repeal of the death tax because of the devastating impact it has on family-owned automobile dealerships. To become law, the bill must now be signed by President Clinton, who has pledged to veto it. Calling death tax repeal "fiscally unwise," the White House said it "would reduce the overall fairness and progressivity of the tax system and would harm charitable giving." Meanwhile, death tax repeal remains one of two top tax cut priorities for Congress this year, along with the marriage penalty. Both issues have enjoyed broad bipartisan support in both the House and Senate. A two-thirds majority of the House and Senate would be required to override a veto. This scenario sets the stage for another chess match this fall, as both the Republican-led Congress and President Clinton seek to pass their priority legislation before time runs out. Senate Majority Leader Trent Lott has indicated he will send the death tax repeal bill to the president the last week in August. Once the president receives it, he has ten days (excluding Sundays) to either sign it, veto it, or let the time expire without taking action -- this is called a "pocket veto." The timing of the death tax vote comes at a critical time: Congress will recess on July 28 and return after Labor Day following both the GOP and Democratic national conventions. Tax cuts are expected to be a major theme for the Republicans in the upcoming presidential and congressional elections this fall. Clinton is seeking to build his "legacy" of accomplishments as he prepares to leave office. The thirteen spending bills that fund the government must be passed by Congress and be signed by the president before the fiscal year runs out. This will all make for much public debate and behind the scenes politicking. Death tax repeal may be "the issue to watch" as the 106th Congress winds down and the two sides wrestle for bragging rights. AIADA will continue to lobby for death tax repeal in August to keep the pressure on the White House to sign the Death Tax Elimination Act. For more information on efforts to repeal the death tax or any legislative issue impacting your business, call AIADA's government relations office.

ISSUE ACTION AIADA members urged Congress to "kill the death tax now" in congressional meetings at the Automotive Congress. AIADA Chairman Barbara Vidmar called for death tax repeal at a Death Tax Summit press conference covered by the national media. AIADA supported a national ad campaign for death tax repeal. AIADA activated its politically-connected grassroots force to call for death tax repeal. Every member of the House and Senate received a letter from AIADA calling for death tax repeal and outlining the association's position on the issue. AIADA's government relations team has met with key legislators. Lobbying efforts continue. AIADA 99 Canal Center Plaza Suite 500 Alexandria, VA 22314 703-519-7800 703-519-7810 FAX GOAIADA@aiada.org