Death Tax Newsletter

Issue #11 — June 30, 2000

To: Pacific Northwest Family Owned Daily Newspapers

cc:

ACTION NEEDED NOW

IMMEDIATE ACTION IMPERATIVE!!! — URGE SENATORS TO SUPPORT DEATH TAX REPEAL

The huge House vote, coupled with polls that show more than 80% of the American public feel the death tax is unfair and should be repealed, has caused the Senate to agree to take the issue up now — the week of July 10. It is critical that Senators hear from you now! Please call your Senators — supporters and detractors alike — and urge them to support H.R.8 (full repeal) when it is brought to the floor.

FULL REPEAL (H.R.8)

Don't let the defenders of this ineffective and destructive tax beguile you with half measures that don't solve the problem. Full repeal is the only workable answer. Some Democrats might be proposing so-called "carve out" language or suggest raising the exemption limit. Be adamant. Having repeal pass the Senate would be historic and provides a legitimate chance for repeal to begin immediately this year.

KEY MESSAGES

• Ineffective tax
  Less than 1% of federal budget
• Kills jobs and local communities
• Kills family businesses, minority businesses and female-owned businesses
• Kills union jobs
• The death tax does not redistribute wealth
• The death tax has widened the wealth gap by killing jobs, investment and minority business

THE "ONLY 2%" ARGUMENT

The opponents of repeal like to falsely claim that this is a tax break for the wealthiest Americans because only 2% of estates are affected. This so-called 2% is only the tip of the iceberg and doesn't include all the businesses that sell out or liquidate to avoid the death tax. The 2% estimate also doesn't consider the many thousands of jobs — many of which are union jobs — that are displaced when family business owners are forced to sell because of the death tax.

OTHER KEY NEWS

DEATH TAX REPEAL PASSED IN HOUSE BY SURPRISING MARGIN

In a historic move that few thought possible this year, the House voted overwhelmingly to repeal the death tax. H.R.8 was passed by the House June 9 by 67% on a 279-136 vote, with 65 Democrats voting in favor. The bill eliminates the death tax through rate reduction over a 10-year period. Once the tax is completely eliminated, the bill eliminates the stepped-up basis for capital gains, a trade-off many Democrats see as critical to their support. H.R.8, co-sponsored by Jennifer Dunn (R-WA) and John Tanner (D-TN) had 244 co-sponsors, of which 44 were Democrats (including Washington Democrats Brian Baird and Adam Smith).

MURRAY SIGNS ON TO DEATH TAX REPEAL LEGISLATION

In a major display of political common sense and bravery, Washington Senator Patty Murray (D) recently became a co-sponsor of S.1128, the Kyl-Kerrey bill. She needs to hear from all of you. We all need to thank Patty and let her know how much we appreciate her leadership. We also need to keep urging her to stay the course on full repeal — not the ineffective compromises that are anticipated from Democratic leadership and the White House.

WYDEN STEPS UP TO LEADERSHIP

In another major display of common sense and in this case — leadership — Oregon Senator Ron Wyden (D) has stepped up to the death tax repeal leadership void created when Senator Kerrey (D-NE) said he would not run for re-election. We all need to call Wyden and thank him, and again, insist he stay the course for full repeal.

MORE INFO

Did You Know?

• The death tax brings in less than 1.1 percent of total federal revenues.
• And, it is estimated it costs the government 65 cents of every dollar raised for enforcement and compliance.
• The death tax is a jobs issue.
• Repeal of the tax would result in 145,000 new jobs over the first 9 years of repeal.
• And that doesn't include the countless jobs that would be saved if the death tax didn't force 70% of family and small businesses to liquidate or sell out after only one generation.
• 99% of all private businesses have fewer than 500 employees. This represents 50% of all private sector jobs which generate 50% of all revenue.
• 77% of the American voters polled by the 60 Plus Association indicated that they would be "more likely" to vote for their member of Congress if he or she voted to eliminate the death tax.

Please e-mail us with your comments, death tax horror stories and suggestions on-line at feedback@deathtax.com.

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