[Congressional Record Volume 143, Number 81 (Wednesday, June 11, 1997)]
[Senate]
[Page S5548]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                    ESTATE TAX LAWS MUST BE REFORMED

 Mr. DORGAN. Mr. President, I want Congress to act decisively 
to stop our estate tax laws from hindering the transfer of family 
businesses and family farms and ranches to the next generation. These 
family enterprises are the major creators of new wealth and new jobs in 
this country. Yet in far too many cases, our estate tax laws force the 
children and grandchildren who inherit a modestly sized family business 
to sell it, or a large part of it, to pay off huge estate taxes. I want 
our tax laws to assist the transfer of family enterprises so they can 
continue to generate jobs and new wealth. Instead our estate tax laws 
now hinder that transfer.
  I've authored legislation in several Congresses to allow family 
farms, ranches, and other small family businesses to be passed along to 
the next generation without being loaded up with massive estate tax 
debt. The legislation I've introduced in this Congress increases the 
unified estate and gift tax exemption from $600,000 to $1 million. In 
addition, it provides a new $1 million exclusion for family business 
assets. Together, my proposals would allow a family business, valued up 
to $2 million, to be passed to the children and grandchildren to 
operate without any estate tax liability.
  A number of my colleagues in the Senate share my concerns about 
estate taxes. In fact, I worked with a core group of Senators, 
including Senators Grassley, Lott, Nickles, and Baucus for several 
months this spring to develop a comprehensive, bipartisan estate tax 
relief bill. This effort led to the introduction of a bipartisan bill, 
called the Estate Tax Relief for the American Family Act of 1997 (S. 
479), which includes a number of important provisions including 
proposals to increase the unified estate and gift tax exemption and to 
target additional support for family-owned and operated businesses. 
Most of the changes recommended in this legislation are long- overdue, 
and I will work with my colleagues to include them in revenue 
legislation this Congress.
  I have decided to add my name as a cosponsor of S. 479 because I 
support the primary thrust and goals of this initiative. I want to send 
a reminder to those calling for tax cuts that estate tax relief for 
family businesses is not a partisan issue. It is important for the 
survival of our Nation's family businesses, and it should be included 
in the balanced budget tax relief package now being drafted in 
Congress.
  Although I am adding my name as a cosponsor to signal a bipartisan 
desire to pass some estate tax relief, I do want to see one provision 
of this bill changed. The cut in the estate tax rate for estates in the 
$2.5 million to $11 million range is, I believe, excessive. I would 
prefer to use the money available for estate tax reduction for a larger 
exemption at the bottom rather than additional tax breaks at the top.
  But I hope that when estate tax relief is enacted that the work we 
have done together will contribute to helping family businesses and 
family farms and ranches to be passed on to the children who will 
continue to operate them.

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