The bill mirrors many of the same measures overwhelmingly passed by the House earlier this year. The U.S. Senate version goes even further to encourage small business to initiate pension plans for their employees by offering a temporary, non-refundable $2,000 tax credit to low and moderate income individuals between the ages of 18 and 60 who contribute to an IRA or qualified plan. Also exclusively in the Senate version is a tax credit of up to $1,000 to offset administrative costs for up to three years. Both bills increase the annual IRA and 401(k) contribution limits and allows individuals over the age of 50 increased participation. For many small business owners, the need for capital reinvestment in their businesses reduces the opportunity for investment in a retirement strategy until the business matures.

The U.S. Chamber strongly favors legislation to provide incentives for more small businesses to offer their workers pension plans. We will vigorously fight for the passage of pension reform in the Senate.

The effort to repeal the estate and death tax will continue next year, as the attempt to override the presidential veto in the U.S. House of Representatives failed to muster a two-thirds majority. Under heavy pressure from the White House, only 53 Democrats voted for the repeal. The final vote was 274 to 157, 14 votes short, with 13 Democrats flip-flopping and siding with the President, although they had voted for the estate tax bill when the House first passed it in June.

The repeal of the Death Tax is the Crown Jewel of small business tax reform. It has been cause for the sale of many farms and small businesses by the heirs, who are left to pay the burdensome tax. The U.S. Chamber of Commerce has vigorously fought for its repeal.

To find out how your representative voted view the Office of the Clerk's Web site.

In the wake of the failed attempt to override the presidential veto, the U.S. Chamber has initiated a new Estate Tax Repeal Task Force. Past votes have demonstrated that bipartisan support clearly exists for an economically feasible method of phasing-out the estate tax in a fair and common sense way. The attempt to override the veto was not successful due to the current political climate, and not the tenor of HR 8.

While much substantive success and public enthusiasm has been garnered in this Congress, the fight is far from over and business must now look to a new President and the next Congress when they take office in January 2001 for relief. The U.S. Chamber is committed to and will continue to remain at the forefront of the battle. It is now in the process of structuring a task force for the purpose of repealing the estate tax in the 107^th Congress.

The plan is a U.S. Chamber-member estate tax repeal task force composed of committed activists with the fortitude and resources to reach the goal. If you would like to work with fellow Chamber members in reaching the goal of repealing the federal estate, gift and generation skipping taxes and have the resources to be a part of this effort, please email Giovanni Coratolo at your earliest convenience.

Health Care Survey Released

A larger percentage of businesses are offering health insurance to their employees, according to a survey of 3000 employers by the Kaiser Family Foundation. Sixty-seven percent of businesses with 199 or fewer workers offer health insurance, up from 54% in 1998. In fact, 99% of businesses with more than 200 employees offer health insurance. The Foundation also noted that many employers are absorbing the impact of higher health care premiums as a tool to attract employees in today's tight labor market.

With premiums for many smaller businesses now going up by double digits, the U.S. Chamber is urging Congress not to increase health care litigation and add new federal mandates and patients' rights to the law books. Instead, the U.S. Chamber is urging Congress to increase incentives to expand coverage.