[Congressional Record Volume 143, Number 28 (Thursday, March 6, 1997)]
[House]
[Pages H785-H786]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                              {time}  1245
                  IT IS TIME TO REPEAL THE ESTATE TAX

  The SPEAKER pro tempore (Mr. LaHood). Under a previous order of the 
House, the gentleman from Utah [Mr. Cannon] is recognized for 5 
minutes.
  Mr. CANNON. Mr. Speaker, I would like to address an issue today that 
is very important to me and, in particular, to America's small family 
farms and businesses, the repeal of the estate tax or, as many like to 
refer to it, the death tax.
  Yesterday I met with Mr. And Mrs. Mouskondis, the owners of Nicholas 
& Co., a family-owned and operated food distributing company in my home 
State of Utah. About 40 years ago, Mr. Mouskondis' father passed on his 
business to his son Bill. While a small company at the time, Nicholas & 
Co. today is steadily expanding and diversifying, and Bill now works 
with more than 250 employees and is constantly working to improve his 
company by using new technology and streamlining his service.
  Yet in order to prepare to pay the estate tax, Bill is facing steep 
costs and may have to sell off assets or, worse yet, release employees. 
This is something Bill has not done since he became the owner of the 
company.
  When the owner of a family business or farm dies, the value of the 
enterprise is added to the owner's estate and is taxed after 
exemptions. While the owner of this business has spent his entire life 
working hard to contribute to society, provide for his family and to 
establish his own American dream, in the end his family must endure the 
loss of him and cover the cost of his commendable life's efforts.
  Not only is the tax a burden, the rates currently run between 37 and 
55 percent, but the costs involved in dealing with this tax are 
exorbitant as well. The average family business spends $20,000 in legal 
fees, $11,900 for accounting fees, and $11,200 for other advisers just 
to pay the taxes.
  But dollars do not tell the real story. Family businesses are exactly 
that, businesses for families. But the Small Business Administration 
reports that a full 33 percent of grieving relatives must sell all or 
part of the family business to pay the estate tax.
  Is it any wonder why only 30 percent of family businesses are passed 
on to the second generation?
  This is simply wrong, wrong because America was founded and its 
government established to protect the life, liberty, and pursuit of 
happiness of each American citizen. We here in Washington are not 
fulfilling our duties when we penalize Americans for working hard.
  It is time to repeal the estate tax. I encourage each of you to 
support H.R. 902, the Cox-Kyl Family Heritage Preservation Act.

[[Page H786]]

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentleman from Florida [Mr. Mica] is recognized for 5 minutes.
  [Mr. MICA addressed the House. His remarks will appear in the 
Extensions of Remarks.]

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