Death and Taxes: Still Inevitable...
No Longer United
Berkley Votes to End Tax on Death; Claims Tax
Cut Will Enliven Southern Nevada Economy

Washington, D.C. (June 9, 2000) — As the great American writer/philosopher Mark Twain once noted, death and taxes are inevitable, but thanks to U.S. Rep. Shelley Berkley (NV-1), they’re no longer inextricably intertwined. For years, family owned business interests and middle income seniors have lamented the high costs of estate planning and so-called “Death Taxes:” the exorbitantly high taxes levied on inheritances when a member of the family dies. Today, Congresswoman Berkley voted to completely eliminate the onerous tax, thus returning billions of dollars a year to the taxpayers.

“When I first ran for Congress,” recalled Berkley, “there were three taxes that I was determined to change: the marriage penalty, the child-care tax credit, and the death tax. I’ve voted to eliminate the marriage penalty. I’ve cosponsored an increase in the child-care tax credit. And today we’ve finally passed the complete elimination of the death tax. This is a great success for southern Nevada.”

The estate tax has long been one of the highest ticket items for Berkley and like-minded Members of Congress seeking to reduce the federal tax burden and unleash billions of dollars of economic power. While the federal tax costs taxpayers over $28 billion over a five year period in direct taxes, associated expenditures to accountants and lawyers to hide billions of estate dollars pose substantial costs to the economy. Critics of the levy have also argued that by demanding up to half the value of a business in taxes, it forces families to sell the kind of small mom and pop stores that have provided stability and continuity to neighborhoods for years. Additionally, because families are forced to sell businesses or land holdings, parcels are frequently subdivided and developed as multiple commercial properties by the highest bidder. The resulting “runaway growth” has been criticized by slow or “smart growth” proponents such as Berkley.

“Lifting this burden from the backs of southern Nevadan businesses and individuals will free up hundreds of thousands of dollars in our region every year,” noted Berkley. “Not only will this help drive the economy in the Las Vegas Valley, but this will reduce the harmful effects of runaway development and the instability of our communities.”

The measure was supported by a sizable majority of lawmakers, including prominent members of minority groups, such as the Congressional Black Caucus and the Congressional Hispanic Caucus. The bill passed the House by a vote of 279-136, and now heads to the Senate for approval.