[Congressional Record Volume 148, Number 79 (Friday, June 14, 2002)]
[Extensions of Remarks]
[Page E1058]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                 PERMANENT DEATH TAX REPEAL ACT OF 2002

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                               speech of

                          HON. MARK E. SOUDER

                               of indiana

                    in the house of representatives

                         Thursday, June 6, 2002

  Mr. SOUDER. Mr. Speaker, I rise today in support of the permanent 
repeal of the death tax. The repeal of this particular tax is 
especially important in ensuring that small and minority-owned 
businesses as well as family farms are not destroyed due to the 
inability to pay this archaic tax.
  A family death is already a difficult burden to bear. The death tax 
furthers the family's pain by presenting the survivors with the choice 
of either paying a large death tax or, if unable to secure the funds to 
pay the tax, selling their family's farm or business. Not only do 
survivors lose their jobs when forced to sell a family business, but 
countless employees of the business often find themselves on the 
streets as well, losing their job, health insurance, and benefits. We 
cannot continue to watch as children who have worked their entire lives 
in a family business lose what is rightfully theirs simply because 
selling their business is the only way they can raise the necessary 
funds to pay the estate tax.
  Additionally, numerous surveys of small business owners have 
indicated that the estate tax is a primary threat to the expansion of 
their businesses because they spend more money on estate planning than 
expansions. Lack of business expansions translates to a lack of new 
jobs being created at that business.
  Finally, I want to clarify that under the law enacted in 2001, the 
death tax is to be repealed in 2010 ensuring that all assets 
transferred from one generation to the next would not be subject to the 
estate tax, but would instead be subject to the capital gains tax. 
Appropriately, the families of the decedent would have a choice to 
either continue the family business or sell it and then pay a capital 
gains tax. Families should make the decisions regarding the sale of 
their farms and businesses rather than be forced to sell in order to 
pay an exorbitant death tax.

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