[Congressional Record Volume 141, Number 94 (Friday, June 9, 1995)]
[Senate]
[Pages S8082-S8083]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


         TARGETING ESTATE TAX RELIEF TO FAMILY-OWNED BUSINESSES

  Mr. DOLE. Mr. President, I am pleased to note that a Treasury 
official appearing before the Finance Committee this week testified in 
support of targeting estate tax relief to family-owned businesses.
  Time and time again, family business owners across the country have 
told me about the unfairness of the current estate tax and its 55 
percent rate. Too often heirs are forced to sell the family business or 
farm just to pay the estate tax. And too often the buyer of the family 
business is a large corporation that does not necessarily have the best 
interests of the community or the business employees at heart.
  I will be introducing legislation in the coming weeks that will allow 
family-owned and other closely held businesses to remain in the family 
after the death of an owner. I intend to drastically reduce the estate 
tax rates for the value of a closely held business. For the smallest of 
businesses, the estate tax should be virtually eliminated.
  Without the estate tax burden on the backs of American families, they 
can continue to prosper. And when families continue to operate their 
businesses we all benefit--the business employees keep their jobs, the 
Government receives income taxes on business profits, and the families 
retain their livelihood.
  The estate tax is not a Democratic or a Republican problem, or one 
that affects only rural or urban families. That is why I am working 
with Members of both sides of the aisle to develop broad, bipartisan 
support for the legislation. There are farmers, ranchers, or family 
businesses in each State that would benefit from the legislation.
  I welcome all Senators to join this effort. I am already working with 
Senators Roth, Baucus, Grassley, Pryor, Simpson, Breaux, Pressler, 
D'Amato, Nickles, Burns, and others to design targeted estate tax 
relief for family-owned businesses.
  The legislation will provide relief to those that need it most--
families whose estates are made up primarily of a family business. It 
is these families who would otherwise be forced to sell their business 
to pay the estate tax. And in determining whether a family business is 
comprised primarily of an estate, I would like to exclude the family's 
principal residence. This would ensure that heirs won't have to sell 
their residence to keep their business.
  Because this legislation is designed to help families that hold on to 
their businesses, if a family chooses to sell a substantial portion of 
the business [[Page S8083]] within a period of time after the decedent 
dies, all or part of the reduced tax rate may be recaptured.
  The legislation will allow families to leave their businesses in the 
hands of family members, or trusted, long-term employees of the 
business.
  The bill will also extend the period of time available to compute the 
alternative valuation date for the family business. This will help 
resolve disputes with the Internal Revenue Service about the value of 
the business when the value is closely tied to the skills of the 
decedent.
  Family-owned businesses are the job creators in this country. In the 
1980's they accounted for an increase of more than 20 million private 
sector jobs. I look forward to working with the farm, ranch, and small 
business community, and Members of the House and Senate, to provide 
relief for out most precious resource--the family business 
entrepreneur.


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