[Congressional Record Volume 143, Number 1 (Tuesday, January 7, 1997)]
[Extensions of Remarks]
[Pages E10-E11]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                         REPEAL THE ESTATE TAX

                                 ______
                                 

                          HON. JOSEPH R. PITTS

                            of pennsylvania

                    in the house of representatives

                        Tuesday, January 7, 1997

  Mr. PITTS. Mr. Speaker, today I introduced a bill to repeal the 
estate tax which has burdened so many farmers and small business owners 
in the 16th District of Pennsylvania. With the repeal of this tax, more 
families in Lancaster and Chester Counties can hold onto their hard-
earned family legacies.
  Mr. Speaker, the estate tax is one of America's most illogical taxes. 
After a person's death the IRS collects between 37 and 55 percent of 
all assets transferred which are valued at more than $600,000. The 
``death tax'' discourages savings, penalizes the sound practices of 
capital formation and investment, and puts many family owned farms and 
businesses in jeopardy after the loss of a loved one.
  In addition, Mr. Speaker, the estate tax is expensive to collect. The 
IRS spends approximately 65 percent of the revenue it collects from 
this tax on enforcement of the estate tax code. Further, the estate tax 
accounts for less than 1 percent of annual Federal revenue. Finally, it 
is expected that the repeal of this tax could create an increase in 
revenue for the Federal Government in the future, as families will be 
able to invest their savings and generate more taxable income.
  Mr. Speaker, the reason many people work so hard is to make life 
better for their children. New businesses, especially minority-owned 
firms, face enough obstacles without having the rewards of hard work 
snatched away at the end of the first generation. I think it's time 
that we give control of life savings back to the

[[Page E11]]

people who have earned them. Let's make sure that farms that have 
stayed in the family for generations aren't sold off due to a bad tax 
policy. Let's end the outrageous practice of punishing thrift and 
financial security. Let's end the bias against savings and capital 
formation. Let's encourage saving, investment, and sound, life-long 
financial management which can provide for a family past a single 
generation. Let's repeal the estate tax and empower our Nation's 
families.

                          ____________________