[Congressional Record Volume 146, Number 67 (Thursday, May 25, 2000)]
[Extensions of Remarks]
[Page E857]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




             INTRODUCTION OF ESTATE TAX RELIEF LEGISLATION

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                           HON. BOB ETHERIDGE

                           of north carolina

                    in the house of representatives

                         Thursday, May 25, 2000

  Mr. ETHERIDGE. Mr. Speaker, I am proud today to introduce legislation 
to provide significant and much needed relief to those who inherit 
family farms and family-owned small businesses. The current estate tax 
dramatically reduces any legacy a parent wishes to leave to his or her 
children. Often, inheritors are forced to sell crucial assets of a 
business or farm in order to pay this federal tax. This greatly 
discourages the next generation from continuing the family business or 
life on the farm.
  I hear all the time from parents who fear that they will not be able 
to pass their operations onto their sons and daughters because of the 
steep tax due upon their death. Due to inherent value of business or 
farm equipment, property and other assets, an estate of a family-run 
business--as many farms are--can quickly and greatly surpass the 
current exemption of $1.3 million. To me, it is absolutely unfair that 
people who work all their lives to build a business can have it 
snatched away from their families by Uncle Sam after they die. 
According to the Congressional Research Service, more than 70 percent 
of family businesses do not survive the second generation, and 87 
percent are not passed onto a third generation.
  Our economy is currently experiencing the largest peacetime expansion 
in our nation's history. We are constantly reminded that small business 
has been the engine of this growth. Why can't the fruits of this 
prosperity be passed to the next generation? Because of a tax code 
which has not kept up with the rate of economic growth in America.
  My bill would increase the current estate tax exemption for family-
owned businesses from $1.3 million to $4 million over the next five 
years and then index the exemption to inflation. I know that this is 
not as far as some of my colleagues would like to go. However, I 
believe reducing estate taxes in this way stands a better chance of 
becoming law than repealing the tax altogether. Frankly, I'd rather get 
some estate tax relief enacted as opposed to getting nothing 
accomplished.
  Our families deserve to see the fruits of their labor passed on to 
the next generation, and reducing the burden of estate taxes is 
something that we absolutely must accomplish. I hope my colleagues will 
join me in supporting this approach to estate tax relief. Let's get 
something done on this issue rather than grandstand and obtain nothing.

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