Taxes

June 16, 2000

M E M O R A N D U M

TO: NTCA MEMBER SYSTEMS
FROM: TOM WACKER, DIRECTOR, GOVERNMENT AFFAIRS TAMMIE LOGAN, GOVERNMENT AFFAIRS REPRESENTATIVE
SUBJECT: Repeal of Estate Tax Moves Forward

NTCA members, along with hundreds of other interested parties, helped push federal legislators to support the repeal of the "death tax."

The House of Representatives overwhelmingly voted to repeal H.R. 8, the Death Tax Elimination Act (also called the "estate tax"), which would repeal all federal estate and gift taxes over the next 10 years.

House Ways and Means ranking member Charles Rangel (D- N.Y.) presented a less-costly substitute bill on the floor, which would have partially eliminated the tax to small businesses and farmers. This bill however failed. Minutes later, H.R. 8 was presented and passed 279-136. Twenty members did not vote.

President Clinton already has announced that he will veto the bill should it make it through the Senate in its current form. Subsequently, depending on the passage in the Senate, H.R.8 may very well become a veto proofed bill. The Finance Committee may address estate taxes as part of a reconcilliation bill scheduled for markup the week of July 10, 2000. All efforts should immensely focus on obtaining Senate support for full repeal of this tax. NTCA will continue to seek full repeal of this tax.