[Congressional Record Volume 143, Number 63 (Wednesday, May 14, 1997)]
[Extensions of Remarks]
[Pages E913-E914]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


          INTRODUCTION OF THE FAMILY BUSINESS PRESERVATION ACT

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                          HON. DARLENE HOOLEY

                               of oregon

                    in the house of representatives

                         Tuesday, May 13, 1997

  Ms. HOOLEY of Oregon. Mr. Speaker, the two great certainties in 
life--death and taxes--

[[Page E914]]

are making it difficult for heirs to hold onto family farms and small 
businesses. I believe that it is time to take action to reform the 
estate tax so that it will be easier for family farmers and small 
business owners to pass their operations on to their children.
  The Family Business Preservation Act is a targeted tax exclusion that 
is designed to have the biggest possible impact on family business 
owners with the smallest possible impact on the Federal Treasury. The 
bill would exclude the first $1.2 million of value in a family-owned 
business interest from a decedent's estate. The new exclusion would be 
provided in addition to the unified credit which currently lets heirs 
protect up to $600,000 of their inheritance from the estate tax.
  It is critical to take action on estate tax reform now. The $600,000 
exemption to the estate tax has not been raised since the mid-1980's. 
And rising farmland costs coupled with an aging farm population makes 
swift action on this proposal critical.
  I urge my colleagues to support this legislation. Please join me in 
taking a step to ensure that when a family has to face personal 
tragedy, such as the death of a parent or a loved one, they will not 
have to worry that it will also lead to the loss of their family farm 
or business.

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