[Congressional Record Volume 146, Number 72 (Monday, June 12, 2000)]
[Extensions of Remarks]
[Page E975]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                   DEATH TAX ELIMINATION ACT OF 2000

                                 ______
                                 

                               speech of

                          HON. J.C. WATTS, JR.

                              of oklahoma

                    in the house of representatives

                          Friday, June 9, 2000

  Mr. WATTS of Oklahoma. Mr. Speaker, I rise today in strong support of 
H.R. 8, the Death Tax Elimination Act. I am proud to have joined many 
of my colleagues as a co-sponsor of this long-overdue, corrective 
legislation. However, a few of my colleagues have called eliminating 
the death tax ``unfair.''
  Mr. Speaker, what is fair about forcing a grieving family to worry 
about losing the family business or farm to the IRS, especially when 
they have just lost a loved one? Did the government put in the long 
hours and make the sacrifices to build this business or work this farm? 
Did the government work hard to leave a legacy to its children? The 
answer, Mr. Speaker, is clearly ``no'' but when a person dies in this 
country, an outrageous tax kicks in on the poor soul's estate.
  The death tax is also ``unfair'' because it is a form of double 
taxation. Small business owners and family farmers pay taxes on their 
investments and work throughout their lifetime, including but not 
limited to income tax, capital gains tax, and even property tax. And 
those who claim this will only benefit the rich have not talked to 
farmers and small business owners in Oklahoma.
  Mr. Speaker, it comes down to this. The harder you work, the more you 
sacrifice to invest in your farm or small business, and what is your 
reward if you succeed? Your reward is to give the government a larger 
piece of what you had hoped to pass on to your heirs. In fact, the 
government's take goes all the way to up to 55 percent--that is over 
half of the worth--of your estate. The government even imposes an 
additional five percent surcharge tax on top of this if your estate 
reaches $10 million or more--reaching a whopping marginal tax rate of 
60 percent. Mr. Speaker, how did the government earn the right to over 
half of what you have spent a lifetime to build? How did the government 
become more entitled to your estate than your heirs?
  The Republican Congress is working to repeal this unfair tax so that 
family businesses don't have to be sold to pay a tax bill, but instead 
can be passed down to children and grandchildren, and family farms can 
continue to exist. With this kind of tax penalty, it is no wonder that 
less than half of all family-owned businesses survive the death of a 
founder and only about five percent survive to the third generation. 
Under our current tax laws, it is cheaper for someone to sell a 
business before dying and pay the capital gains tax than to pass it on 
to his children. This is a grave injustice that cannot continue.
  It has been said only in America can one be given a certificate at 
birth, a license at marriage and a bill at death. The death tax is 
contrary to the free-market principles on which this Nation was 
founded. We should be encouraging businesses, especially small 
businesses, not creating obstacles for their existence.
  The Republican Congress has a track record of being pro-family and 
pro-business. We take family businesses very seriously. When mom-and-
pop shops are closing up because of an outdated tax policy, it requires 
leadership and determination to remedy the situation. I am pleased to 
be a part of this effort.
  No one should have to meet the undertaker and the IRS on the same 
day. The time is now to end, once and for all, the Federal death tax. 
The winners will be consumers, small businesses, family farms and 
loving families all over the country who have enough to think about 
when there is a death in their household. Paying Uncle Sam should not 
be part of the grieving process.
  I urge my colleagues to support H.R. 8, the Death Tax Elimination 
Act.

                          ____________________