FOR IMMEDIATE RELEASEWednesday, January 31, 2001
Contact: Dennis S. Day, 703-837-5310, [email protected]
Phil Thoden, 703-837-5364
ESTATE TAX ELIMINATION INTRODUCED IN 107TH CONGRESSAGC Pledges Support and Announces Legislative Priorities
Washington -- The Associated General Contractors of America (AGC) strongly endorsed legislation introduced today by Representatives Jennifer Dunn (R-Wash.) and John Tanner (D-Tenn.) to gradually repeal the estate (death) tax over a 10-year period. Under their legislation (bill number not yet assigned), estate and gift tax rates would be reduced by five percent per calendar year until both taxes are eliminated. Additionally, the bill would immediately increase the amount of assets exempt from the tax from $675,000 to $1.3 million. Their bill has 172 original cosponsors and is expected to ultimately attract a House majority of cosponsors.
"Construction companies are hit hard by the death tax as they are often family-owned and always capital intensive," said AGC Executive Vice President and CEO Stephen E. Sandherr. "Surviving the death tax -- at rates from 37 to 55 percent -- deprives companies much needed capital at a time when it may be needed most, after the death of an owner."
Last year, legislation by Reps. Dunn and Tanner to eliminate the death tax was approved by a bipartisan vote of 279-136 in the House of Representatives. President Clinton subsequently vetoed this bill. However, President Bush is a strong proponent of death tax elimination.
The construction association also announced today its top legislative priorities for the 107th Congress. Topping the list is the 'demolition of the Death Tax', followed by:
-- Blocking or modifying the ergonomics standard to construction;-- Protect and build on the successes of TEA-21 and AIR-21;-- Support expansion of Federal clean drinking water and wastewater revolving funds;-- Support federal efforts to improve education infrastructure;-- Support needed environmental reforms such as the Clean Air Act, Superfund and the Endangered Species Act, and oppose national efforts to impede growth;-- Support changes to tax policies that promote investment, business development and business expansion, such as lower corporate and individual tax rates;-- Block employer liability for health care decisions; and -- Block blacklisting regulations/legislation.
"These priorities are the issues that Congress will consider this year that will affect the construction industry. We look forward to working with the new Congress and a new administration on these issues to benefit our members," said Sandherr.
The Associated General Contractors of America is the largest and oldest national construction trade association, founded in 1918. AGC represents more than 33,000 firms, including 7,500 of America's leading general contractors, and 12,000 specialty-contracting firms. Over 14,000 service providers and suppliers are also associated with AGC, through a nationwide network of chapters. Visit the AGC website at www.agc.org.
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