WEEK ENDING MARCH 3, 2000

Estate tax provisions mirror those passed by Ways and Means Committee. The $30 billion in tax cuts largely mirror those approved by the House Ways and Means Committee last year and will not require additional committee action prior to floor consideration. The principal components of the estate tax section include:

• Convert the unified credit into a unified exemption beginning 2001.
  
• Repeal the 5 percent "bubble" which phases out the benefit of the graduated rates.
  
• Repeal tax rates above 53 percent on a phased-in basis through 2004.
  
• Reduce all rates one percent per year for three years.
  

AIADA working for estate tax relief. Estate tax relief for dealers remains atop AIADA's legislative agenda. AIADA dealers encouraged Congress to pass this bill before adjourning last year and will work to support passage of this measure.

Clinton submits annual trade report to Congress. On March 2, President Clinton transmitted to Congress the 2000 Trade Policy Agenda and the 1999 Annual Report of the President on the Trade Agreements Program. The report prioritizes the Administration's trade agenda for the year, outlines the Administration's trade actions for the past seven years, and includes a special report on the World Trade Organization.

U.S., Japan hold auto trade talks. Officials from the U.S. and Japan met in Washington Thursday for "preliminary" discussions on what course of action to pursue when the 1995 auto accord expires at the end of the year. Details from the meeting have not been revealed.