MARCH 17, 2000

National Notes Defeated Proposal May Bode Well for Estate Tax Cuts The death tax is a fairly volatile issue that has caused great discord between Democrats and Republicans in Congress. Historically, Republicans tend to favor reducing or eliminating estate and gift taxes, while Democrats do not. The parties have left little room or hope for compromise. But this may change, if a recent proposal by Representative Charles Rangel (D-NY) indicates willingness on the part of Democrats to shift position. The proposal is the largest estate tax relief plan offered by Democrats in several years, eliminating estate taxes for family farms and small businesses with values of up to $4 million. Yes, the proposal was rejected—Republicans criticized it for hiking taxes on larger estates among other things—but in the greater political context, it may have far-reaching significance. Source: Bloomberg News 3-10-2000