[Congressional Record Volume 144, Number 67 (Friday, May 22, 1998)]
[Extensions of Remarks]
[Page E955]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




         INTRODUCTION OF THE DEATH TAX INFLATION ADJUSTMENT ACT

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                           HON. WALLY HERGER

                             of california

                    in the house of representatives

                          Friday, May 22, 1998

  Mr. HERGER. Mr. Speaker, today I rise to announce the introduction of 
``The Death Tax Inflation Adjustment Act,'' legislation which would 
provide an annual cost-of-living adjustment for the unified credit--a 
major estate tax reduction tool--beginning in 2007.
  Despite a tax system that discourages savings, many American families 
work hard to set aside a portion of their earnings because they hope to 
be able to leave something to their children. Not only are these 
lifelong savings subject to the death tax, however, but the value of 
the unified credit--a major death tax reduction tool--had, until 
recently, been seriously eroded by inflation.
  As a result of the historic ``Taxpayer Relief Act of 1997,'' the 
unified credit will now be increased from an effective exemption of 
$600,000 in 1998 to an effective exemption of $1,000,000 in 2006. 
Regrettably, while both the House--and Senate-passed versions of that 
landmark tax reduction package indexed this $1,000,000 exemption 
annually for inflation, this provision was dropped from the final 
conference report and was not enacted into law.
  My Speaker, the legislation I am introducing today would simply 
provide for an annual cost-of living adjustment to the unified credit 
beginning in 2007. While many of us in Congress would like to eliminate 
the death tax entirely, I hope we can all at least agree that the value 
of this important benefit should never again be eaten away by 
inflation. The time to act is now. I would urge all of my colleagues to 
cosponsor ``The Death Tax Inflation Adjustment Act.''

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