[Congressional Record Volume 146, Number 72 (Monday, June 12, 2000)]
[Extensions of Remarks]
[Page E977]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




             CLOSE THE 527 LOOPHOLE AND END THE DEATH TAX!

                                 ______
                                 

                            HON. BOB FRANKS

                             of new jersey

                    in the house of representatives

                         Monday, June 12, 2000

  Mr. FRANKS of New Jersey. Mr. Speaker, on Friday, June 9, 2000, with 
my support, the House passed the legislation (H.R. 8) to eliminate the 
Death Tax.
  For too long, exorbitant tax rates have made it difficult for 
Americans to pass their savings onto their children, and for small 
businessmen and farmers to keep their enterprises within the family.
  That's why I cosponsored and voted in favor of the Death Tax 
Elimination Act (H.R. 8), which would phase out the estate and gift tax 
over a period of 10 years.
  It is my hope that phasing out the death tax will make it easier for 
individuals and families to accumulate savings for future generations.
  In addition, during debate on this important legislation, a motion 
was offered to address another important issue--campaign finance 
reform. I supported this motion.
  Congress' failure over the years to address the issue of campaign 
finance reform hurts all of us. It undermines public confidence in this 
institution and cast a cloud over every action we take in this House.
  I have been actively fighting for campaign finance reform in this 
House for a number of years--from authoring my own Independent 
Commission Bill to supporting a ban on soft money through Shays-Meehan 
to supporting today's motion to close the 527 loophole.
  Recently, there has been an increase in anonymous campaign 
expenditures by third parties. Many of these organizations are 
classified by Section 527 of the tax code. These ``527'' organizations 
are currently free to participate in our electoral process, but are not 
required to disclose to the American voters from where their funds 
originate.
  To establish disclosure requirements for individuals and 
organizations who wish to take an active role in affecting the outcome 
of federal elections is just plain common sense. Individuals and 
organizations who strongly believe in an issue or a candidate and are 
willing to back them up with the financial resources should not be 
allowed to hide behind a loophole.
  Congress must act on legislation requiring disclosure for any group 
who wishes to participate of our federal electoral process.

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