[Congressional Record (Bound Edition), Volume 149 (2003), Part 11]
[Extensions of Remarks]
[Page 15589]
[From the U.S. Government Publishing Office, www.gpo.gov]




                DEATH TAX REPEAL PERMANENCY ACT OF 2003

                                 ______
                                 

                               speech of

                          HON. PHILIP M. CRANE

                              of illinois

                    in the house of representatives

                        Wednesday, June 18, 2003

  Mr. CRANE. Mr. Speaker, I rise in strong support of H.R. 8, the Death 
Tax Repeal Permanency Act of 2003, and I commend my friend from 
Washington Mrs. Dunn for being such a strong advocate for this 
legislation.
  The United States is the land of opportunity, encouraging free 
enterprise and rewarding entrepreneurs. The estate and gift tax runs 
contrary, to this basic philosophy. When I came to Congress over 30 
years ago, I set out to eliminate the death tax, which is simply 
unfair, outdated and penalizes our families, farmers and small business 
owners.
  According to recent statistics, one-third of small business owners 
today will have to sell outright or liquidate a part of their firm to 
pay death taxes. In addition, half of those who must liquidate to pay 
their death taxes will each have to eliminate 30 or more jobs. In 
addition, small business owners that insure against such an outcome 
face the burden of paying onerous premiums. This is hard-earned money 
that otherwise could be used to expand their business. We must put an 
end to it once and for all.
  Death tax repeal was included as part of the 2001 Bush tax cut. Under 
that legislation, the death tax phases out over a period of year, and 
is eliminated completely in 2010. Unfortunately, due to the arcane 
procedures of the Senate, the provisions in the 2001 bill sunset in 
2011, or 10 years after enactment. Therefore, we need to take action 
now to make the repeal permanent.
  Mr. Speaker, I want to thank small business and family owned business 
groups like the National Automobile Dealers Association for tirelessly 
fighting to end this punitive and harmful tax. They have been powerful 
and influential advocates in this effort.
  I ask unanimous consent that the following letter from the National 
Automobile Dealers Association urging repeal of the Death Tax be 
included in the Congressional Record.
                                               National Automobile


                                          Dealers Association,

                                        McLean, VA, June 18, 2003.
       Dear Representative: On behalf of the National Automobile 
     Dealers Association (NADA), the nearly 20,000 franchised new 
     car dealer members of NADA, and their more than one million 
     employees, we are writing to urge you to vote yes on H.R. 8, 
     to eliminate the estate tax once and for all.
       The majority of NADA's members are small family-owned and 
     community-based businesses. Most assets of automobile dealers 
     are not liquid. A dealer's capital is invested in the land 
     under the dealership, buildings housing showrooms, vehicle 
     repair equipment, and other facilities. Dealers also need 
     substantial working capital to finance new- and used-car 
     inventory. Thus, for dealers, the death tax can cripple or 
     kill the family-owned business since they are left with few 
     options but to sell the business or incur substantial debt to 
     pay the tax.
       In providing for the elimination of the estate tax in H.R. 
     1836 in 2001, Congress clearly recognized the inequity and 
     unfairness of estate taxes. As it was noted at the time, 
     there is something very wrong in our system when a small 
     businessman or businesswoman spends a lifetime building a 
     business, paying taxes, providing jobs and serving the 
     community only to have the government step in at their death 
     to collect another tax. In enacting H.R. 1836, Congress and 
     the President wisely realized that death should not trigger a 
     tax. Only when assets are sold should there be a taxable 
     event.
       The question now before the House of Representatives is 
     whether to continue that wise policy beyond 2010. NADA and 
     its dealer members and their employees firmly believe that 
     supporting H.R. 8, making estate tax repeal permanent and 
     postponing taxes until assets are sold is critical to the 
     preservation of family-owned and community-based businesses 
     like automobile dealerships.
       Preserving these businesses is crucial to the health of the 
     national economy and essential to the economic well being of 
     local communities. These businesses provide the majority of 
     new job growth in this country. Very often, family-owned 
     businesses are central to the economic vitality of local 
     communities, providing good livelihoods for millions of 
     working Americans.
       NADA respectfully urges you to vote yes on H.R. 8. This 
     vote is about preserving family-owned businesses in local 
     communities across this great nation. Thank you for your 
     consideration of our views.

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