Senate Votes to Repeal Estate Tax

The Senate eliminated estate and gift taxes over a 10-year period to help preserve family-owned trucking operations, but the bill faces a veto by President Clinton who said it benefits wealthy Americans.

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The legislation is set to take effect in 2001, and is identical to the House version passed in June. The Senate voted 59-39 in favor of the bill Friday morning, hours after numerous attempts were made by both parties to amend the House bill.

“All of us essentially agree that we should repeal the death tax,” said Sen. Byron Dorgan (D-N.D.). He criticized the Republican bill for providing tax cuts to wealthy Americans, and endorsed the Democratic initiative to providing relief through reductions in the tax rate and more exemptions for family-owned businesses.

“I think the bill will pass and will affect the vast majority of trucking companies in this country,” said Kevin William, president of the Distribution & LTL Carriers, Alexandria, Va. before Friday's vote.

Studies have shown that most family businesses do not survive following the death of family leaders. Heirs are forced to sell some of the assets to pay the estate tax and then must pay capital gains taxes on the assets that were sold.