[Congressional Record Volume 147, Number 25 (Wednesday, February 28, 2001)]
[Extensions of Remarks]
[Page E238]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                        REFORMING THE ESTATE TAX

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                           HON. PATSY T. MINK

                               of hawaii

                    in the house of representatives

                      Wednesday, February 28, 2001

  Mrs. MINK of Hawaii. Mr. Speaker, yesterday I introduced H.R. 759, a 
bill that would reform the estate tax and provide an immediate 
exclusion equivalent deduction of $5 million.
  Clearly the estate tax has a deleterious effect on successful persons 
who hope to pass along property to their children. In my State of 
Hawaii, property values are highly inflated and properties which would 
not result in any estate tax on the mainland are subject to estate tax 
in Hawaii. In 1997, the latest figures available, 2.5 percent of 
estates in Hawaii were subject to Federal estate taxes, compared to 
only 1.9 percent nationwide.
  Existing inheritance taxes unfairly penalize ordinary individuals who 
work hard their entire lives so they can leave something for their 
children. The tax scale hits family farmers and businesses 
disproportionately. I have received many letters from constituents 
detailing the burden the tax has had on their small business.
  Currently, the first $675,000 of estates are exempt from tax. The 
exemption level will increase to $1,000,000 in 2006. Family businesses 
have an exemption of $1,300,000, These numbers are too low. No small 
family-owned farm or small family-owned business should have to be sold 
by the children to pay an inheritance tax.
  I agree that a full repeal of the estate tax would give too much tax 
relief to the wealthiest Americans. My bill merely increases the 
exemption for estates to $5 million and makes that change effective 
immediately.
  I urge my colleagues to cosponsor this legislation.

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