The recent passage of the Death Tax Elimination Act of 2000, for example, is a key ingredient in the Republican strategy to promote tax relief for Americans during this election year. Clinton has called Senate passage of legislation to repeal estate and gift taxes over 10 years irresponsible and vowed to veto it when it reaches his desk. The bill did not appear to have enough support in the Senate to override a veto. In 2007, all estate taxes would drop by 1.5 percentage points. Also, H.R. 8 would change the unified tax credit into a unified tax exemption, with the effect of reducing the estate tax rate on smaller taxable estates substantially.
Many agencies are family-owned enterprises.
Their heirs often face the prospect of having to close the agency following the death of the principal owner because they are unable to pay the estate taxes, Berthoud said. David Winston, vice president of government affairs for the National Association of Insurance and Financial Advisors, said there was no doubt the president would veto the bill. Winston said the association supports a repeal of estate taxes, but he expressed concern that the public would see Senate passage of the bill as the new law and neglect financial planning. The American Council of Life Insurers said it supports repeal of the inheritance tax, but it had no further comment. Herb Perone, media relations director for the American Council of Insurers, emphasized that the council was neutral on the inheritance legislation, but he said the repeal or reduction of these taxes had emerged as serious legislation that eventually will be enacted.