WASHINGTON, D.C. – The United States Chamber of Commerce strongly urged Congress to end the "death tax," after the Ways and Means Committee today passed HR 8 (24–11), which phases out federal estate taxes over the next ten years. The bill also repeals the federal gift and generation-skipping transfer taxes.

"The death tax can quickly turn the American dream into a nightmare. It forces families to close businesses built over generations and eliminate good-paying jobs, because heirs must sell to pay the death tax," said Cecelia Adams, Chamber director of congressional and public affairs. "Further, it raises little revenue, is costly to collect and has spawned a whole industry to avoid paying it."

The Death Tax Elimination Act, sponsored by Representatives Jennifer Dunn (R-WV) and John Tanner (D-TN), has 237 cosponsors, including 44 Democrats. The bill that passed out of committee is nearly identical to the provisions in last year’s Taxpayer Refund and Relief Act that President Clinton vetoed and is expected to come up for a vote in the full House as early as the week of June 5.

"Although immediate repeal is preferable, this legislation will gradually eliminate the death tax. It’s totally unjust for the federal government to slap an enormous tax on the estate of American taxpayers when a loved one dies," Adams said. "Death should not be a taxable event."

The U.S. Chamber of Commerce is the world’s largest business federation representing more than three million businesses and organizations of every size, sector and region.

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