CONTACTS: Linda Rozett/Eric Wohlschlegel
(202)463-5682/888-249-NEWS

Wednesday, June 12, 2002

U.S. Chamber Chides Senate for Not Ending Death Tax

WASHINGTON, D.C. -- The United States Chamber of Commerce today chided the Senate for not following House lawmakers who voted last week to permanently repeal the death tax, but praised Senators Phil Gramm (R-TX) and Jon Kyl (R-AZ) for trying to put an end to the estate tax on Americans' assets.

"The Senate has missed a golden opportunity to provide tax relief for America's small businesses, farmers, and families," said Thomas Donohue, Chamber president and CEO. "It will not die here -- we will continue the fight until common sense wins. Death should not be a taxable event."

The Chamber has long pushed for a full repeal of the death tax to: preserve the livelihood of many small-business owners, protect the jobs of their workers, and safeguard the interests of local communities without a substantial revenue loss to the federal government.

Small-business owners have consistently identified permanent repeal of the estate tax as one of their most pressing concerns. The Chamber initiated a large grassroots push to repeal the death tax over the past year and encouraged tens of thousands of its members to write their representatives and senators.

The Senate vote of 54-44, was just short of the 60 votes needed to overcome procedural objections and make the repeal of the death tax permanent. The tax is being phased out over the next 10 years as part of President Bush's $1.3 trillion tax cut plan.

Last week, with a strong bipartisan vote, the House of Representatives passed the Permanent Death Tax Repeal Act, which completely eliminates the death tax beyond 2010.

The Chamber of Commerce sent a Key Vote letter to all members of the House today, urging them to support the Gramm-Kyl amendment to H.R. 8. Complete text of the letter is available online.

The U.S. Chamber of Commerce is the world's largest business federation representing more than three million businesses and organizations of every size, sector and region.

# # #

02-106