[Congressional Record Volume 146, Number 72 (Monday, June 12, 2000)]
[Extensions of Remarks]
[Page E974]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                   DEATH TAX ELIMINATION ACT OF 2000

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                               speech of

                         HON. MICHAEL N. CASTLE

                              of delaware

                    in the house of representatives

                          Friday, June 9, 2000

  Mr. CASTLE. Mr. Speaker, I rise today in support of H.R. 8, the 
``Death Tax Elimination Act of 2000.'' This legislation pursues an 
admirable goal--a return to the principle of single taxation. Taxing 
the event of death makes little economic sense. It causes small 
businesses and farms to close or partially liquidate their assets to 
pay this tax, which can be as high as 55 percent. In turn, that leads 
to job loss for the employees of the business. Therefore, the benefits 
of this legislation flow to far more people than just business owners 
and their families.
  Unfortunately, some taxes are a necessary evil. No modern, 
industrialized society can provide roads, a judicial system, or care 
for the needs of the poorest among us based on the goodwill and 
philanthropy of individual citizens. Yet, that does not give the 
Federal Government license to tax everything. By phasing out the death 
tax, a business' assets are still subject to taxation, just not double 
taxation. They are subject to capital gains tax when the next 
generation makes an informed, rationale business decision to sell the 
assets. This causes much less disruption in business operations and 
often allows employees to keep their jobs.
  My only hesitation with this legislation is its potential impact on 
the budget. Earlier this year, the Congressional Budget Office 
projected a 10-year budget surplus of $888 billion assuming that 
discretionary spending increases at the rate of inflation. I am 
convinced that conservative economists, such as the Federal Reserve 
Chairman Alan Greenspan, are correct that paying down the national debt 
should be a high priority. This year, the House of Representatives has 
passed $180 billion in marriage tax penalty relief over the next 10 
years, $123 billion in small business tax relief to accompany an 
increase in the minimum wage, and $23 billion in repealing the Social 
Security Earnings limit that punished working seniors. Because the 
first five years of death tax relief in this bill were already included 
in the small business tax relief package, the additional cost of this 
bill is $41 billion. In total, the House has passed $367 billion in tax 
relief, which does not endanger the budget surplus. As this legislation 
moves to the Senate and negotiations with the Clinton Administration 
begin, I will be paying close attention to the budgetary impact of a 
comprehensive tax package, and I will work to ensure we have a 
balanced, fiscally responsible package.
  Mr. Speaker, I urge you to work closely with the Senate and the 
Clinton Administration to arrive at a balanced tax package that 
provides tax relief for our family farms and small businesses.

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