Don Nickles: “First, I compliment my friends, Senator Kyl and Senator Gramm, for their leadership in trying to eliminate one of the…”

“First, I compliment my friends, Senator Kyl and Senator Gramm, for their leadership in trying to eliminate one of the most unfair taxes in U.S. history. We have a chance to do it. We have two proposals that are before us. One is by Senator Gramm and Senator Kyl, of which I am a cosponsor, to repeal the death tax so there will not be a taxable event on somebody's death. Now there will be a taxable event when the property is sold, also known as a capital gains tax. That is 20 percent. That ought to be enough. We are trying to make permanent the repeal in the year 2010. Let's make that permanent. That is our objective. Under that scenario, if there is property in an estate--let's say it is a business, a manufacturing company, maybe it is a farm or ranch, maybe it is a restaurant in downtown Washington, DC. That restaurant may sell for $5 million. Maybe it is a second or third generation restaurant, Mortons, and it is worth several million dollars. If the son or daughter takes over that business and they do not sell it, there is not a taxable event. But if they decide it is too much of a hassle and they do not want to continue the operation and they sell it, then there is a taxable event. It will be taxed as capital gains at 20 percent instead of under Senator Conrad's proposal of 55 percent. I probably shocked somebody when I said 55 percent. I read Senator Conrad's proposal as 50 percent.”