(703) 907-7927 gnelson@nna.or

Washington, D.C.-- On August 31, President Clinton vetoed H.R. 8 the Death Tax Elimination Act that the National Newspaper Association and numerous organizations are supporting because it repeals one of the most unpopular, destructive taxes collected by the federal government. The House of Representatives today unsuccessfully tried to override the President’s veto. To override, both the House and Senate must pass the measure by two-thirds majority. This is the first override vote for the 106^th Congress. The House voted 276-157 - falling 13 shy of the required two-thirds vote.

NNA’s President Dan Phillips, assistant publisher of The Oxford (MS) Eagle, expressed the disappointment of the trade association, which represents nearly 3,500 community newspapers. "This veto lets stand a tax that falls most heavily on the shoulders of family-owned community newspapers. Community newspaper publishers and their families continue to face the crisis of selling the family-owned newspaper because of the harsh estate tax resulting in the loss of a community voice locally. NNA and other small business organizations continue to hope for a time when the death tax is terminated. Today, we heartily applaud the efforts of the House members attempting to override the veto. We believe there will be another opportunity for Congress to finally kill this unfair tax."

Under H.R. 8, if the next generation continues to operate its business, as is common among community newspapers, there would be no death tax or capital gains tax. However, heirs would pay capital gains taxes if and when their businesses or other assets are sold. In a letter sent to the House of Representatives on August 31, 2000, the Family Business Estate Tax Coalition pointed out that annual death tax revenues today are less than 2 percent of total federal receipts, but the social and economic costs the death tax imposes on family businesses and the American economy are far higher. The death tax discourages savings and investment, reduces wages and job creation, and is the leading cause of dissolution for thousands of family-run businesses. NNA is a member of this 70-member coalition spearheaded by the National Federation of Independent Businesses. (NFIB.)

Established in 1885, the National Newspaper Association is the voice of America’s community newspapers and the largest newspaper association in the country. The nation’s community newspapers inform, educate and entertain 150 million readers every week.

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