Death Tax Newsletter

August 25, 2000

To: Pacific Northwest Family Owned Daily Newspapers

cc:

ACTION NEEDED NOW

DEATH TAX ELIMINATION ACT IS ON THE PRESIDENT'S DESK!

If you have not already expressed your support for H.R. 8, the Death Tax Elimination Act, to the President, now is the time to do so! The bill was sent to him late this week. Please contact him today by calling (202) 456-1414 or by e-mailing president@whitehouse.gov. Although President Clinton has announced his intention to veto this measure, communicating with the White House is critical for two reasons: 1) as a political matter it is certainly possible that the President could reverse his position if he were convinced it would help Democrats in the fall elections, and 2) in the event the President vetoes the bill, an outpouring of public support for repeal could lead to a trade with Republicans, giving them H.R. 8 in exchange for legislation that Democrats would like to take home before the election.

NEED TO SHORE UP SUPPORT IN THE HOUSE FOR OVERRIDE VOTE!

House leadership has expressed its intention to schedule an override vote on September 7 if the President vetoes H.R. 8. When the House originally passed the bill, it did so on a 279-136 vote with 65 Democrats voting in support. In order to assure a successful override vote it is critical to focus on three groups:

• The 65 Democrats who voted in support of the legislation
• The 6 Members who are cosponsors of H.R. 8, but who voted against it, including: Eliot Engel (D-NY), Eddie Bernice Johnson (D-TX), Frank Mascara (D-PA), Greg Meeks (D-NY), Ed Pastor (D-AZ), and Edolphus Towns (D-NY)
• The 11 Democratic Members of Congress who did not vote. (There were also 9 Republicans who did not vote that day, but the presumption is that they will all support the override vote.) Included in the 11 are Washington Congressman Adam Smith (a bill cosponsor) and Oregon Congressman Earl Blumenauer.

KEY POINTS TO REMEMBER

• H.R. 8 IS a compromise piece of legislation. It includes the elimination of the stepped up basis in capital gains proposed by Senate Democrats. As a result, appreciated capital gains that are not currently taxed will be taxed under this legislation if or when the heirs sell the assets. BUT death will no longer be a taxable event.
• Family business "carve-outs" and increases in the unified credit do not solve the problem. We are too close to success to settle for a short term, ineffective fix that sounds good but does not allow the successful transfer of a family business.

DEATH TAX ADS AVAILABLE ON DEATHTAX.COM

Ads encouraging the President to sign H.R. 8 are available on www.deathtax.com and can be downloaded in full, half or quarter page format. Please consider running them this week. For additional information, please contact Jill Mackie at 206/464-2028.

Also attached is an op-ed piece co-authored by Jennifer Dunn (R-WA) and Jon Kyl (R-AZ), the chief House and Senate proponents of The Death Tax Elimination Act.

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

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