[Congressional Record (Bound Edition), Volume 146 (2000), Part 18]
[Extensions of Remarks]
[Pages 26144-26145]
[From the U.S. Government Publishing Office, www.gpo.gov]



                              ESTATE TAXES

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                     HON. MARSHALL ``MARK'' SANFORD

                           of south carolina

                    in the house of representatives

                       Tuesday, November 14, 2000

  Mr. SANFORD. Mr. Speaker, I rise today to share the thoughts of a man 
whom I respected deeply, John Monroe J. Holliday. John did many things 
in South Carolina, one of which was host the Gallivants Ferry Stump. 
The Stump is a 180-year-old tradition built on kicking around political 
ideas face-to-face. It has been a spot where people in that part of 
rural South Carolina gathered and I've always enjoyed the chance to 
attend and compare

[[Page 26145]]

notes and ideas with farmers and city folks alike. I have always 
considered myself a token Republican at this Democratic event, but it 
did me well as my elections have been won with the help of Democrats in 
western Horry County. John passed away last month and he will be missed 
by many South Carolinians.
  One of the issues that John was very passionate about was the estate 
tax. Many times he wrote to me urging a change to the law. Two days 
before he died, he drafted a letter to me on the current estate tax 
policy in our country. I will let his final words on the subject speak 
for him.
  I submit the following letter for the Record:

                                         Holliday Associates, LLC,
                            Galivants Ferry, SC, October 19, 2000.
     Congressman Mark Sanford,
     Longworth Building,
     Washington, DC.
       Dear Mark: The Holliday family has faced increased estate 
     taxes on an annual basis for such a long time, and this 
     increase is a result of Congress's failure to adjust the gift 
     and estate tax exclusion by inflation. In 1987 the amount 
     each individual could shelter from estate taxes was 
     $600,000--in addition to the annual gift tax exclusion for 
     each individual which I believe was $10,000. Margy and I have 
     constantly taken advantage of the estate gift tax exclusion--
     in fact each year we were able to give to our daughters a 
     total of $40,000.
       From December 1986 to December 1987, the consumer price 
     inflation rose from 109.6 to 113.3 or a little more than 
     3.6%. If both the gift and estate exclusions had been 
     adjusted for this 3.6% inflation increase, we could have 
     transferred an additional $50,840 to our children tax free. 
     This is only a part of the additional benefits our family 
     could have been entitled to. Any of the earnings on the 
     $50,840 would have been excluded from our estate. If we 
     assume a 10% annual growth rate from 1988 to the present, 
     over $159,000 would have been excluded.
       If we use these same assumptions and recalculate each year 
     the impact that these hidden estate tax increases have on our 
     estate, my family should have been entitled to a total 
     exclusion of more than $8.8 million. The end result is that 
     the estate will pay over $4,840,000 more in estate taxes!
       The reality is that Congress has intentionally allowed the 
     annual increases to take place under their current theory of 
     ``the rich are too rich''. To avoid the wrath that they would 
     have faced if the tax increases had been legislated, they 
     have avoided accountability by allowing inflation to do their 
     dirty work.
       The failure to adjust exemptions like the estate and gift 
     tax exclusions is nothing but a hidden tax increase! I 
     believe as a result of these increases that it is more than 
     appropriate for Congress to redress this injustice by making 
     significant changes in the estate and gift tax exclusions.
       I apologize for this long letter but some adjustments must 
     be made to help this horrible situation.
       With warm regards, I am
           Yours very truly,
                                          John Monroe J. Holliday.

     

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