Political Quotes

“today I am proud to be introducing the Family Business and Family Farm Preservation Act of 1997, which will provide urgently needed estate tax relief to our Nation's family-owned businesses and farms. It is no accident that this is my first bill as a Member of the U.S. Senate, for I fervently believe that small, family enterprises hold the key to our economic growth and prosperity and that Government policies must promote and not undermine their continued existence. Simply put, the extremely high estate tax rates make it very difficult for many families to pass their businesses on to the next generation--the very opposite of what Government policy should be. After allowing for what is essentially a $600,000 exemption, an amount which has not been increased in a decade, the marginal rates that effectively apply for estate tax purposes range from 37 to 55 percent, higher than any other generally applicable Federal tax rates. Adding insult to injury, some of what we leave to our children has already been subject to income taxation, and the combined effect of income and estate taxes can be a tax bite as high as 73 percent. It should come as no surprise that when a family business or farm is left to the sons and daughters of the owner, the estate often lacks the cash to pay the tax. A 1995 Gallup survey found that one-third of the owners of family businesses expect that some or all of the company will have to be sold to satisfy estate tax liabilities.”