09/ 20/ 2006
Last June, the Senate considered legislation to permanently repeal the death tax, but failed by three votes to get the 60 needed to proceed under Senate rules. Under pressure for a permanent solution before the end of the year, congressional leaders then looked to craft a compromise reform bill that would provide much-needed relief and predictability for small businesses. In the end, they crafted a bill that would exempt estates worth less than $5 million for individuals, or $10 million per couple, thus permanently removing the threat of the death tax from most small-business owners and family farmers.
To further strengthen the compromise’s chances of success, Senate leaders added a provision to raise the minimum wage—a proposal that was already moving forward under intense political pressure. While small businesses and NFIB had strong concerns about the wage hike, NFIB was willing to support the package because it included many other important tax cuts, such as reducing the depreciation period for restaurant equipment and extending tax credits for research and development.
The House passed the compromise on a strong, bipartisan vote. In a Senate vote in August, however, the compromise foundered, despite a majority vote of 57 – 42. Once again, death-tax reform was blocked on a procedural vote.
Senate Majority Leader Bill Frist switched his vote to “nay,” thus reducing the “yea” votes to 56, so that he might bring the compromise up for a final vote again when the Congress returned in September. At press time, this was still a strong possibility.
NFIB.com
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