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September 18, 2000

Vol. 79,  No. 17

House fails to override death tax veto

Despite a final push from House Republican leaders, Democratic supporters, farmers and small business owners, the estate tax lives for another year as the House failed to override President Clinton's veto of legislation ending the punitive tax.

Although "death tax" repeal supporters picked up 11 votes from representatives that were not available to vote on the original bill, 13 Democrats and one Republican changed their votes and sustained the veto.

"It's unfortunate that a plan with such a broad base of support didn't become law," said Pat Wolff, an American Farm Bureau Federation senior director of 

Prior to the House veto override vote, Illinois Farm Bureau member Lee Eichhorst said preparing for death taxes often involves expensive estate tax planning, leaving families to pay lawyers and the government. Eichhorst is joined by Ohio farmers (left) and Rep. J.C. Watts (R-Okla.), right.

governmental relations. "Two years ago, not many Democrats would have touched this issue. This year, 65 Democratic representatives voted to end death taxes."

Legislation ending the death tax passed the House, June 9, by a vote of 279-136. The Sept. 7 override vote was 274-157 in favor, 14 votes short of the two-thirds majority required.

"Two-thirds of the House did vote to end death taxes, just not on the same day," Wolff said.

House Majority Leader Dick Armey (R-Texas), Reps. J.C. Watts (R-Okla.), Jennifer Dunn (R-Wash.), John Tanner (D-Tenn.) and Neil Abercrombie (D-Hawaii) held a bipartisan press conference before the override vote. Illinois Farm Bureau member Lee Eichhorst also participated and explained why death taxes must die.

"After a lifetime of high input costs and weak commodity prices, these death tax costs are literally the final straw," said Eichhorst.

With a House override, estate taxes would have been reduced by about 15 percent over 10 years, until the tax was completely eliminated in 2010.

Explaining why death taxes hit farmers so hard, AFBF President Bob Stallman urged the House to maintain the work they had done to help ensure farmers will have a legacy to pass on to their children.

"Over 90 percent of U.S. farms are owned by individuals, family partnerships or family corporations who continually improve their land and buildings with hopes of transferring a successful operation to their sons and daughters," Stallman said. "But when the government comes calling for the cold cash to pay off death taxes, family members are frequently forced to sell the farm, piece by piece."

Armey said before the vote that if representatives failed to override Clinton's veto, Republicans would not be willing to negotiate a scaled-back version.

"We've carried it as far as we can this year," Armey said. "We expect to be back next year. We expect to pass it."

Additional links:
Rep. Dick Armey (R-Texas)
Rep. J.C. Watts (R-Okla.)
Rep. Jennifer Dunn (R-Wash.)
Rep. John Tanner (D-Tenn.)
Rep. Neil Abercrombie (D-Hawaii)

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