September 6, 2000
Dear Representative:
On behalf of the 14,000 members of the
National Association of Manufacturers (NAM), including approximately
10,000 small and mid-sized manufacturers, I urge you to vote to
override the President’s veto of H.R. 8, the Death Tax Elimination
Act.
Estate tax rates as high as 55 percent
force the sale of many small manufacturing companies upon the
owner’s death. The death tax burden far exceeds the liquid assets of
most manufacturing families. When a small company is sold, the
employees and local community often suffer as well. While many
family-owned companies develop estate planning strategies, these are
costly and time-consuming. The death tax generates costs to
taxpayers, the economy and the environment that exceed its revenue
benefits.
Currently, only one third of
family-owned businesses survive into the next generation. For many
of the two-thirds that don’t, death taxes are a prime reason. This
is very short-sighted tax policy – a business that has to close and
sell off assets to pay a death tax stops paying income taxes
and payroll taxes – employees lose jobs and the government loses
revenue.
The 106th Congress has voted
twice to repeal this onerous burden. Now is the time to ensure the
end of this unfair tax. The vote to override the veto of the Death
Tax Elimination Act (H.R. 8) will be considered for designation as a
Key Manufacturing Vote in the NAM voting record for the
106th Congress.