FOR IMMEDIATE RELEASE CONTACT: Trent Duffy or Greg Crist

March 28, 2001 (202) 225-8933

WASHINGTON - Chairman Bill Thomas (R-CA) today announced that the Ways and Means Committee will markup a bill Thursday, March 29th, to phase down rates and repeal the Federal estate, gift, and generation-skipping transfer tax over the next 10 years. HR 8, the Dunn-Tanner Death Tax Elimination Act of 2001, will be the base bill to be considered by the Committee. The bill is expected to be considered by the House of Representatives as early as next week. The estate tax is commonly referred to as the “death tax,” since it is generally triggered solely by death.

“Repealing this unfair tax is a bipartisan goal, and now is our chance to finally get rid of it forever. No American should have to visit the undertaker and the IRS in the same week. The time has come for us to bury it once and for all. Death by itself should not trigger a tax,” said Chairman Thomas.

Phase Down Rates and Repeal the Estate, Gift, and Generation-Skipping Transfer Tax: Although final details have yet to be released, the plan would phase down rates and repeal the federal estate, gift, and generation-skipping transfer taxes within 10 years. The plan would also simplify portions of the generation skipping transfer tax rules prior to repeal. A cost estimate for the new bill is not available.

• Last year, the House of Representatives passed a similar bill by a vote of 279-136, with 65 Democrats voting with every Republican to repeal the death tax.

• According to the National Federation of Independent Business (NFIB), one-third of small business owners today will have to sell outright or liquidate a part of their firm to pay estate taxes. Half of those who must liquidate to pay the IRS will each have to eliminate 30 or more jobs.

• According to NFIB, more than 70% of family businesses do not survive the second generation and 87% do not make it to the third generation. Sixty percent of small business owners report that they would create new jobs over the coming year if estate taxes were eliminated.