[Congressional Record Volume 146, Number 74 (Wednesday, June 14, 2000)]
[Senate]
[Pages S5101-S5102]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                           ESTATE TAX RELIEF

  Mrs. MURRAY. Mr. President, I rise today to express my support for S. 
1128, the Estate Tax Elimination Act.
  Mr. President, I came to understand the impact of the federal estate 
tax during my first campaign for election to the U.S. Senate. As I met 
with hundreds of small businessmen and women, timber lot owners, and 
farmers and ranchers, I consistently heard the federal estate tax was a 
major road-block to the long-term success of their family operations.
  But when I came to the Senate in 1993, it appeared it would be a long 
time before Congress could take action on the estate tax, or any other 
tax issue for that matter. We faced deficits as far as the eye could 
see. We had to make hard choices about spending cuts and tax relief for 
the neediest families. I'm pleased that my colleagues and I on the 
Democratic side made those tough choices in 1993 and in subsequent 
years. Combined with a strong economy, those tough choices gave us the 
opportunity to be in the position we are in today.
  The effort to roll back the federal estate tax, and provide relief 
for farms and small businesses, started slowly. In 1995, I joined those 
efforts by introducing S. 161, the American Family Business 
Preservation Act. Senator Bob Dole was the prime Republican cosponsor 
of this measure. With respect to the estate tax, the Murray-Dole bill 
would have reduced the maximum estate tax rate from 55 percent to 15 
percent if the heirs continued to own and operate a business for ten 
years after the death of the primary owner. Given the limited resources 
we had, I believed this modest bill was a good step forward.
  In 1997, Congress passed the Taxpayer Relief Act, a bipartisan effort 
to reduce taxes for working Americans. The bill provided for an 
increase in the estate tax exemption over ten years, and created an 
additional exemption for small business and farm assets. I supported 
this bipartisan initiative to provide estate tax relief to my 
constituents. As it is phased in, this law will help to ensure the very 
small percentage of estates subject to the estate tax bill grow even 
smaller.
  But we should all recognize the environment has changed. As projected 
surpluses have grown, the debate about the estate tax has turned from 
increasing the exemption to outright repeal. Estate tax opponents have 
made their case for elimination, and it's compelling. The question for 
me is no longer whether the estate tax will or should be repealed, but 
how and when it will be repealed. I believe one of the appropriate 
roles for Democrats in this debate--the same Democrats who helped 
balance the budget--is to ensure that we promote as progressive an end 
to the estate tax as possible.
  At this moment in time, I believe S. 1128 is the most progressive 
estate tax repeal vehicle that is under consideration. Instead of 
taxing an estate when it is transferred to the next generation, 
it would require heirs to pay a capital gains tax on appreciated value 
when the asset is sold. This provides an effective mechanism for 
transferring farm and business assets, while still maintaining a 
reasonably progressive tax structure.

[[Page S5102]]

  I understand there is some debate about whether S. 1128 or similar 
proposals will increase the tax code's complexity. Now that the House 
has overwhelmingly passed estate tax repeal, we have an ideal 
opportunity to engage in a serious, thoughtful debate about the current 
effects of the estate tax and the possible implications of various 
repeal proposals. I believe by the end of this year, Congress, the 
Administration, and the American public will have a better 
understanding of the complex choices we face.
  I would like to make it clear that I do not believe estate tax repeal 
should be the only tax priority of this or future Congresses. There are 
many inequities, complexities, and inefficiencies in the tax code, many 
of which affect low- and middle-income working families who need tax 
relief the most.
  In the spirit of helping those who need it the most, I have 
cosponsored legislation to address the alternative minimum tax and the 
marriage penalty. In addition, I have cosponsored tax legislation to 
expand health insurance, improve the infrastructure of our nation's 
public schools, encourage alternative energy sources, enhance the 
safety net for farmers and ranchers, and increase the availability of 
child care and long-term care. Last year, I sponsored tax legislation 
to protect forest and agricultural land, which passed the Senate in 
July.
  Estate tax relief should certainly be an important component in any 
agenda to provide relief and economic opportunities to working families 
and family-owned businesses. Therefore, I support estate tax repeal in 
the context of a modest, targeted tax cut benefitting working families.
  Before the end of the year, Congress and the Administration will 
likely reach agreement on a reconciliation package. Further reform--if 
not repeal--of the estate tax should be a part of that package. While 
repeal may not be possible this year, I look forward to strongly 
supporting increased exemptions for small business and farm assets. At 
the very least, we should guarantee a brighter and less complicated 
future for those families that need estate tax reform the most.
  I urge my colleagues to cosponsor S. 1128, and to work toward 
meaningful action on the estate tax issue before Congress adjourns this 
fall.

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