[Congressional Record Volume 148, Number 57 (Wednesday, May 8, 2002)]
[Extensions of Remarks]
[Page E753]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                               DEATH TAX

                                 ______
                                 

                          HON. ADAM H. PUTNAM

                               of florida

                    in the house of representatives

                         Wednesday, May 8, 2002

  Mr. PUTNAM. Mr. Speaker, during my first term in Congress, I am proud 
that I have helped pass a number of bills to reduce taxes and 
regulations on the entrepreneurs and small businesspeople of Florida 
and the United States of America.
  Even so, there is much work left to be done. On April 2, 2001 the 
House successfully passed H.R. 8, the Death Tax Elimination Act of 2001 
with my support. On April 18, 2002 the House again acted and 
successfully passed H.R. 586, the Taxpayer Relief Guarantee Act of 2002 
with my support. It is time that the other body of Congress recognizes 
the importance of these two bills and acts to take up these two pieces 
of legislation immediately. Even so, I will continue to push to make 
last year's death tax repeal and tax relief permanent, because the 
bills are still set to expire in 2011.
  Repeating the death tax and making tax relief permanent are two 
critical issues facing America today. First, repealing the death tax is 
of utmost importance because of its wide reaching debilitative impact. 
More than 98 percent of the businesses in Florida are small businesses, 
and 84 percent of the jobs in Florida come from firms having 25 or 
fewer employees.
  The real casualties of the death tax are those businesses and farms 
in the 98-percent range providing their owners' families a middle-class 
income and standard of living. Before the death tax phase-out, when 
small businesspeople and farmers died, their assets were subject to 
liquidation in order to raise money needed to pay for their tax 
liabilities. Now their money goes into their businesses, to pay their 
employees and take care of their families.
  Despite their best estate planning efforts, 70 percent of small and 
family-owned businesses do not survive through the second generation 
and 87 percent do not make it through the third generation. And 9 out 
of 10 successors whose family business failed within three years of the 
owner's death said death taxes played a major role in the company's 
demise. Repealing the double-dipping taxation of the death tax is not 
only just it is long overdue.
  Another major issue facing small businesses throughout America is the 
burden imposed by the Federal tax system. The Tax Relief Act of 2001 
much needed relief for small businesses and the self-employed. About 85 
percent of America's small businesses--17.4 million-pay taxes at 
individual rates and do benefit directly from the marginal tax rate 
reductions in the act.
  Last year we repealed the costly ergonomics regulations put in place 
in the waning days of the previous Administration, passed major tax 
relief, and after years of work we found the votes necessary in 
Congress to finally end the small-business's nightmare. We have begun 
the process to repeal the death tax and make tax relief enacted last 
year a permanent reality. We have succeeded in doing much, but still, 
more is needed to protect America's small business and secure its 
future for generations to come.

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